Growth of political uncertainty may undermine investor's trust in Central Asia - WB
Almaty. June 5. KazTAG - Growing political uncertainty could undermine investor confidence in Central Asia, reported the press service of the World Bank (WB).
“The destabilizing effect on trust of business circles and investors can also have political differences between some Central European countries and the European Union, the election results, the tightening of international trade restrictions and the inhibition of structural reforms,” - stated in the World Economic Outlook: growing tensions, a fall in investmen”.
In addition, "a marked increase in the debt burden on the private sector in the region creates the possibility of significant contingent liabilities for the public sector".
“Prospects of the region are still burdened by significant risks of negative development of the situation. The main risk factor here is that the decline in the economy of the region’s most important trading partner, the euro zone, will be deeper than expected,” -the report says.
The weakening of economic activity in Central Asia and Eastern Europe in Russia, according to the forecasts of the World Bank, may affect the volume of remittances, which constitute a significant share of income in countries such as Kyrgyzstan, Moldova, Tajikistan and Ukraine.
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