Global economic slowdown impacts CIS growth, IMF says

October 09. Universal Newswires

Global economic slowdown impacts CIS growth, IMF saysEconomic woes in Europe and the United States will slow growth in the Common of Independent States (CIS) to just 4 percent this year, the International Monetary Fund (IMF) warned Tuesday.

Of the former Soviet republics, Kazakhstan, Russia, and Ukraine will be hardest hit by the EU debt crisis and falling global energy prices, the IMF said in its new World Economic Outlook report.

The IMF last year had forecast average growth in the CIS at almost 5 percent for 2012.

The global economy is weak and will grow by just 3.3 percent in 2012, slower than an IMF estimate three months ago of 3.5 percent.

The IMF projects Kazakhstan’s economy as expanding by 5 percent, a downward revision from 6 percent estimated in May. It does forecast a rise to 6.6 percent in 2013, however.

Uzbekistan bucks the trend in that gross domestic product (GDP) growth is predicted at 7.4 percent this year, up from 7 percent estimated last April. The IMF retained its earlier projection of 6.5 percent growth for Uzbekistan in 2013.

Inflation in Uzbekistan will ride at 12.9 percent over the full year 2012 and 10.7 percent next year, it said.

The IMF projected GDP growth in the other three Central Asian states Turkmenistan, Tajikistan, and volatile Kyrgyzstan at 8 percent, 6.8 percent, and just 1 percent, respectively.

The IMF advised the CIS member states to carry out structural reforms, while strengthening their financial institutions and bolstering government cash coffers.