UN: Tensions over Ukraine have negative impact on economic situation in CIS countries

Baku. 20 January. REPORT.AZ/ Growing tensions over Ukraine have a negative impact on the prospects of economic development in most countries of the Commonwealth of Independent States (CIS). Report informs it was stated in the updated UN report World Economic Situation and Prospects 2015. According to the report in 2014, economic growth in the Commonwealth of Independent States (CIS) fell sharply as a result of geopolitical tensions. According to the report, the growth rate of the gross domestic product (GDP) in the CIS and Georgia decreased from 2.0% in 2013 to 0.8% in 2014. Experts predict a slight acceleration of development - to 1.1% in 2015 and 2.1% in 2016. According to the report, Azerbaijan's economic slowdown was due to the reduction in oil production.

The report also states that in the Russian Federation in 2014, economic growth has stopped. Experts believe that Moscow, having considerable foreign exchange reserves, is able to withstand the current turmoil, however, continued instability will lead to long-term negative consequences for investment.

In Ukraine, the weak economic growth accompanied by a significant decline in production.The conflict in the south-eastern Ukraine has affected economic activity in the industrial areas - in the Donetsk and Lugansk regions - and the amount of investment that has led to a sharp decline in GDP.In 2015, in case of the weakening of geopolitical tensions and stabilization of production in the country, it is expected a slight increase in total production.

Depreciation of the national currency - hryvnia - caused a surge in inflation, which in 2014 exceeded 10%.