Member nations of the Eurasian Development Bank (EDB) will probably get out of the current situation unevenly, including due to different opportunities of fiscal stimulation and differences in the epidemiological situation, says a report released by the EDB Center for Integration Studies on August 25.
Eurasian Economic Integration — 2020, in particular, notes that over the four first months of this year, economic recession has been registered in all EDB member nations, except Tajikistan.
In Russia, gross domestic product has reportedly declined 1.9 percent, in Kazakhstan – 0.2 percent, Belarus – 1.3 percent, Kyrgyzstan – 3.8 percent, and Armenia – 1.7 percent.
EDB analysts consider that the coronavirus pandemic has identified weaknesses of the globalized production system.
According to them, regionalism could become an effective way to mitigate global shocks. .
“This process implies strengthening cooperation between neighboring countries, united on a regional basis, for the purpose of creating efficient and flexible supply chains and mitigating risks of overdependence on trade with the largest industrially advanced countries and emerging market economies,” reads the report.
Meanwhile, according to official data, Tajikistan’s GDP for the first six months of this year was 32.4 billion somoni and its real growth rate was 3.5 percent.
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.
