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Main risks in EEU countries - budget and banking sector

The main risks in the countries of the Eurasian Economic Union are concentrated around the budget sphere and the banking sector. This trend was noted by the Chief Economist of the Eurasian Development Bank (EDB) Yaroslav Lissovolik on the results of the development of the economies of the region in the first quarter of 2017.

It is noted that after the relative stabilization of economies in 2016, countries enter a phase of a significant reduction in inflation and a consistent reduction in key rates. This creates more favorable conditions for positive economic dynamics in the region. The recovery of economic activity in Russia begins to generate positive impulses for growth in a number of countries — participants of EDB thanks both to a recovery in the growth of remittances and an increase in exports.

Trends in the development of the Kyrgyz economy are largely in line with regional ones. In addition to stabilization of the economy, inflation is approaching the lower threshold of the inflationary benchmark.

The economy of Tajikistan stands apart. Amid very high growth rates, there is an acceleration of inflation and an increase in the key rate of the required reserves ratio by the Central Bank.

«Restoration of mutual trade between the largest economies of the region (Russia, Kazakhstan and Belarus), as well as the activation of integration investment processes, can not only accelerate growth, but also increase its sustainability in the medium and long term," Yaroslav Lissovolik said.

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