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19 January 2022, 13:58

EEC representative names risks for Eurasian Economic Union economies

An archive photo
An archive photo

MOSCOW, 19 January (BelTA) – Official representative of the Eurasian Economic Commission (EEC) Iya Malkina told a press briefing in Moscow about the risks facing the economies of the Eurasian Economic Union (EAEU), BelTA has learned.

“Although the EAEU economies bounced back and reached the pre-pandemic level last year, the EEC experts predict a slowdown this year. The GDP growth in the EAEU is expected at 3.1% in 2022. Firstly, the economic growth in the EAEU states is likely to remain weak, because the recovery growth will end, fiscal support will shrink and the monetary policy will tighten. In addition, weak investment will also affect economic growth in the medium term. In the long run, the worsening demographic situation will have its toll on economic prospects of Belarus and Russia,” Iya Malkina said.

According to her, inflationary risks remain high for all the EAEU member states due to the growth in world prices for food products and raw materials, the prolongation of fiscal support measures and the depreciation of national currencies. “By the end of 2021, the average annual inflation rate in the EAEU countries is estimated at 6.1%, in 2022 it is expected to drop to 4.5%. For comparison, in 2020 the inflation rate was 3.9%,” the EEC representative said.

“The EAEU is also likely to be affected by a number of other global risks, such as new waves of the COVID-19 infection, and possible shocks in the global financial markets due to the tightening of monetary policy by the world's leading countries,” Iya Malkina emphasized.

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