EDB upgrades forecast for aggregate GDP growth of bank’s member states by 0.7 p.p. to 4% in 2021
MINSK, Jul 8 - PrimePress. The Eurasian Development Bank (EDB) has upgraded its forecast for aggregate GDP growth of bank’s member states (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan) by 0.7 percentage points in 2021 to 4% against 2020, reads the latest EDB macroeconomic report posted on July 7, 2021.<br> <br> In the macroeconomic forecast for 2021 of November 26, 2020, the EDB forecasted aggregate growth at 3.3%. <br> <br> The forecast was revised following an upgrade of Russia’s GDP growth estimate from 3.3% to 4.1%. The recovery of the Russian economy goes faster than expected; oil prices are higher than in the previous forecast; increased budget revenues will provide additional support for spending.<br> <br> The EDB predicts a slowdown of inflation from 6.6% per annum on average in May to 5.6% by the end of 2021, which will contribute to the alleviation of inflationary pressures from demand and the recovery of production chains.<br> <br> Bank analysts expect Russia to raise the key rate to 6-6.5% in 2021 to prevent overheating of the economy. In the medium term, transition to neutral monetary conditions in most member states of the EDB is expected with a projected slowdown in inflation.<br> <br> 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<br> <br>
2021-07-08
Primepress
EDB upgrades forecast for aggregate GDP growth of bank’s member states by 0.7 p.p. to 4% in 2021
In the macroeconomic forecast for 2021 of November 26, 2020, the EDB forecasted aggregate growth at 3.3%.
The forecast was revised following an upgrade of Russia’s GDP growth estimate from 3.3% to 4.1%. The recovery of the Russian economy goes faster than expected; oil prices are higher than in the previous forecast; increased budget revenues will provide additional support for spending.
The EDB predicts a slowdown of inflation from 6.6% per annum on average in May to 5.6% by the end of 2021, which will contribute to the alleviation of inflationary pressures from demand and the recovery of production chains.
Bank analysts expect Russia to raise the key rate to 6-6.5% in 2021 to prevent overheating of the economy. In the medium term, transition to neutral monetary conditions in most member states of the EDB is expected with a projected slowdown in inflation.
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