Central Asia and Southern Caucasus – Economic Development and Importance of Austria's Foreign Trade

Globalisation, a growing and sustained phenomenon in spite of the economic crisis, strengthens the importance of the EU's economic relations with third parties. Its commitment in Central Asia and Southern Caucasus can be argued not just with development aid, but even more with the dependence on energy, the search for new markets and an interest in the stability of an important geopolitical region. The study provides an overview of the economies in these two regions and Austria's economic relations to them. These heterogeneous economic areas differ in their productivity levels and structures. Over the past years they have clocked up high growth rates and continue to have a great potential to catch up in their development. Against this background, the study furnishes estimates of the export potential for Austrian businesses. To this end, it makes qualitative estimates of demand, calculates an indicator to match the Austrian export structure to the import structures of countries in Central Asia and Southern Caucasus, and analyses Austria's competitive standing in these countries. According to the study, the export potential is greatest in Southern Caucasus where countries are oriented towards Europe and in affluent Kazakhstan. Complementing its findings, the study develops economic policy conclusions to strengthen integration with these countries.