Though vast resource endowments are a necessary condition for economic advancement, they are not sufficient on their own, and the real test is to get the products to the markets, S&P said.

Oil (especially in Kazakhstan) and gas (predominantly in Turkmenistan and Uzbekistan) are the most valuable natural assets in the region. While Central Asia’s hydrocarbons deposits are modest by global standards, the region’s population is even smaller in relative terms, which suggests that sustained high energy prices should provide an excellent springboard to prosperity, S&P said.

Growth in the region is robust, averaging between 5 percent per year in Kyrgyzstan and almost 10 percent per year in Kazakhstan over the past five years. Improved terms of trade lie at the heart of this growth, generating domestic demand among consumers and business communities, while investment has reached unprecedented levels, S&P said.

In the near term, the largest threats to stability and prosperity arise from the consequences of irrational exuberance during the resource boom. They are most evident in Kazakhstan, where rampant credit growth and an unprecedented construction bonanza have created serious economic imbalances, the rating agency said.