EFSD experts review the macroeconomic situation in Armenia, Belarus, the Kyrgyz Republic, and Tajikistan in the first half of 2020

30 September 2020

Moscow, 30 September 2020. The reviews of macroeconomic developments in four EFSD member countries – Armenia, Belarus, the Kyrgyz Republic, and Tajikistan – in the first half of 2020 have been published.

The 2020 crisis has shown that the countries are very sensitive to the emergency caused by the rapid spread of the COVID-19 pandemic. The pandemic began to impact the economies through the foreign trade channel – the contracted global demand and outputs have pushed down foreign trade, investment, and remittances. The quarantine measures to restrict economic activity because of the spread of the pandemic and growing uncertainty depressed or decelerated economic activity in the first half of 2020, which seriously affected the financial position of businesses and public budgets. A slump in tax revenues and the need for additional spending on health care and economic support measures expanded budget deficits.

Over the remaining months of 2020, the economies of the four EFSD countries will be influenced by uncertainties associated with the possible second wave of the COVID-19 pandemic as well as the speed of economic recovery. Should there be no second wave, the economies are expected to begin to rebound gradually starting from the autumn of 2020. If no restrictions are imposed in 2021 and the governments continue to support the economies, they are projected to start to recover their economic growth rates.

The macroeconomic reports are available online.

Additional Information:

The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

The Eurasian Fund for Stabilization and Development (EFSD) amounting to US $8.513 billion was formed on 9 June 2009 by the governments of the same six countries. The EFSD assists its member states in overcoming the consequences of the global financial crisis, ensuring their economic and financial stability, and fostering integration in the region. The EFSD member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the EFSD Resources Manager.

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