UN forecasts decline of economic growth in CIS in 2019-2020
Almaty. January 23. KazTAG - The United Nations (UN) forecasts decline in economic growth in the Commonwealth of Independent States (CIS) in 2019–2020, the organization’s press service reports.
“We don’t have any fundamental changes concerning the forecast we submitted last May, but I would like to note that we revised downwards the prospects for economic growth and economic development in the CIS space in 2019-2020,” Grigor Aghabekyan, member of the UN Department for Economic and Social Development.
In particular, the UN revised downward the forecast for the growth rate of the Russian economy to 1.4% in 2019.
“We also expect some growth slowdown in Ukraine and Belarus. It is possible that for many smaller economies of the CIS states where rather high level of economic activity was noted in 2018, for example, in Armenia, in Tajikistan, it will be difficult to repeat this year. One of the factors is inflation. If it accelerates in Central Asia, it can undermine the purchasing power and adversely affect economic prospects," he said.
In addition, he noted, the fiscal policy in the CIS space is “quite conservative, that is, in best case, neutral with respect to economic growth.”
“And the acceleration of inflation has already resulted in tightening of lending by central banks. Several countries raised the key rate of monetary policy last year, ” he said.
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