According to the announcement of IMF Middle East and Central Asia Department Director Masood Ahmed, since 2008 the countries of the Caucasus and Central Asia have experienced the most difficult economic situation. The data was released at the IMF-World Bank Spring Meetings.
In the Caucasus and Central Asia, economic growth forecast slumped to 3%.
The IMF’s analysts predict that the Commonwealth of Independent States region will slide into recession in 2015 because of the crisis in Russia. Most countries are expected to have double-digit inflation.
“The decline is projected as a result of spillovers from Russia and lower export prices for oil, metals, and minerals,” the report reads.
However, the forecast cannot be applied to all countries. Experts suppose that Russia, Armenia, and Belarus will slide into recession, in Georgia there will be a decline in the economic growth, and in Ukraine there is a possibility of economic recovery if its pace is high.
For oil exporters, lower oil prices imply a much weaker outlook. However, neither importers will have benefits from a reduction in oil prices. According to analysts, these benefits will likely be more than offset by Russia’s domestic economic weaknesses.
