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Largest drop in GDP in EAEU registered in Kyrgyzstan in May

According to the results of four months of 2020, the largest economic recession was registered in Kyrgyzstan. The Eurasian Development Bank provided such data.

The beginning of the second quarter of the year was characterized by a significant decrease in business activity in the EDB member countries. Most of them had strict social isolation measures aimed at prevention of the spread of coronavirus infection. The work of many business entities, mainly providing consumer services, was suspended.

As a result, Russia’s GDP fell by 1.9 percent, Kazakhstan — by 0.2 percent, Kyrgyzstan — by 3.8 percent and Armenia — by 1.7 percent.

«Service industry organizations suffered the greatest losses in this situation. Significant deterioration was registered in the wholesale and retail trade, the tourism industry and the restaurant business, in the sectors providing other paid services to the population. Measures of social isolation, suspension of work of individual organizations and «cooling» of credit activity had a negative impact on domestic consumer demand,» the bank’s economists explain.

In May this year, a phased exit from quarantine began in many countries of the world, including in the EDB region of operations. Countries are implementing measures to restore the economic sphere with an eye on the epidemiological situation.

«By the end of May, in most member states of the bank, the activity of the population in public places has increased compared to the minimum indicators in April, but it still remains below the quarantine level. The economy of the region has begun to move towards recovery,» the EDB said.