Economic activity in EEU to decline in 2020 – EDB
<p> MINSK, Aug 25 - PrimePress. Economic activity in the Eurasian Economic Union (EEU; Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia) will decline by the end of 2020, the Eurasian Development Bank (EDB) says in the Eurasian Economic Integration 2020 report. </p> <p> </p> <p> The economies of the region will be supported by large-scale government measures as part of their fiscal and monetary policies. This will help smooth out the negative economic and social impacts of the COVID-19 pandemic and normalize business activity as the epidemiological situation improves, reads the report. </p> <p> </p> <p> The EDB expects that the weakening of the national currencies of the EEU member states against the backdrop of increased volatility in global commodity and financial markets will put pressure on the cost of imported goods, which will be a key factor in accelerating inflation in most countries of the region in 2020. In the medium term, a significant disinflationary impact is expected from weak domestic demand, which will lead to a significant slowdown in consumer price growth in the region and may lead to a softening of monetary policy. </p> <p> </p> <p> The COVID-19 pandemic affects the economies of the countries of the Union in two main groups of channels. The first result from the deterioration of the external economic environment, being manifested in weaker demand for exports of the states of the region, a decrease in incomes from exports of raw materials due to falling prices, a disruption in global value chains, a decrease in the volume of remittances, deterioration of business sentiment, as well as tighter financial conditions and weaker national currencies. The second group of factors is associated with internal restrictive measures introduced in some states of the region to contain the spread of the disease. Their effect is manifested in a decrease in the output indicators of a large number of sectors of the economy, primarily those related to the service sector. </p> <p> </p> <p> The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB charter capital totals US $7 billion. The bank’s member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. End </p>
2020-08-26
Primepress
Economic activity in EEU to decline in 2020 – EDB
MINSK, Aug 25 - PrimePress. Economic activity in the Eurasian Economic Union (EEU; Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia) will decline by the end of 2020, the Eurasian Development Bank (EDB) says in the Eurasian Economic Integration 2020 report.
The economies of the region will be supported by large-scale government measures as part of their fiscal and monetary policies. This will help smooth out the negative economic and social impacts of the COVID-19 pandemic and normalize business activity as the epidemiological situation improves, reads the report.
The EDB expects that the weakening of the national currencies of the EEU member states against the backdrop of increased volatility in global commodity and financial markets will put pressure on the cost of imported goods, which will be a key factor in accelerating inflation in most countries of the region in 2020. In the medium term, a significant disinflationary impact is expected from weak domestic demand, which will lead to a significant slowdown in consumer price growth in the region and may lead to a softening of monetary policy.
The COVID-19 pandemic affects the economies of the countries of the Union in two main groups of channels. The first result from the deterioration of the external economic environment, being manifested in weaker demand for exports of the states of the region, a decrease in incomes from exports of raw materials due to falling prices, a disruption in global value chains, a decrease in the volume of remittances, deterioration of business sentiment, as well as tighter financial conditions and weaker national currencies. The second group of factors is associated with internal restrictive measures introduced in some states of the region to contain the spread of the disease. Their effect is manifested in a decrease in the output indicators of a large number of sectors of the economy, primarily those related to the service sector.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB charter capital totals US $7 billion. The bank’s member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. End