Azernews.Az

The CIS economies are expected to recover in 2010, supported by stronger worldwide demand and improved financial conditions, the United Nations has said in a report.
The rebound will be subdued, however, as a consequence of continued fragility of the banking sector and some planned fiscal consolidation, according to the UN’s World Economic Situation and Prospects 2010 report.
It said that after contracting by 6.7 per cent in 2009, the combined GDP of the CIS is expected to expand by about 1.7 per cent in 2010.
The report noted that the decline of the Russian economy dampened economic performance throughout the CIS.
It also said the output decline was steepest in Ukraine and Armenia. Less open economies, such as Turkmenistan and Uzbekistan, continued to expand despite the global recession. Other economies, such as Kyrgyzstan and Uzbekistan, found a buffer in rising gold prices and gains from renegotiated agreements with Russia regarding natural gas exports, the report said.
Unemployment rates have increased starkly in most CIS countries as well as in Georgia. Armenia, Moldova and Ukraine also witnessed a signifcant deterioration in labour-market indicators. Moreover, the return of migrant workers who had lost their jobs in the Russian Federation caused a further increase in unemployment as well as social tensions in their home countries, especially the low-income CIS countries.
Weak domestic demand and falling energy and food prices have dampened infation throughout the CIS.
Fiscal deficits have increased as tax revenues declined, social spending increased and large amounts of resources were earmarked to rescue the ailing banking sectors of the larger CIS economies. Low-income countries were able to sustain higher spending pressures with the support of the IMF, the UN experts concluded.*