CIS Countries Economic Forecast

Economic Snapshot for the CIS Countries

January 12, 2021

CIS Plus GDP to rebound in 2021

The CIS Plus GDP is expected to rebound in 2021, on easing lockdown measures as Covid-19 vaccines are gradually rolled out. Healthier domestic demand in heavyweight Russia, stronger remittance inflows for smaller economies and firmer external demand should be the key drivers. That said, geopolitical tensions, new Covid-19 strains and slow vaccine rollout cloud the outlook.

Regional inflation hits high

Regional inflation jumped to 6.6% in May (April: 6.1%), marking the highest reading since our records began in 2018. The acceleration was broad-based and driven by soaring food prices and input costs, with Belarus, Tajikistan and Ukraine recording the largest price growth compared to April. In contrast, price pressures eased in Armenia. Inflation is seen peaking in June.

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