YEREVAN, December 13 /ARKA/. The outlook for non-financial companies in the Commonwealth of Independent States (CIS) for 2019 is stable, Moody’s Investors Service said in its annual outlook on the region.
“The key drivers of the stable outlook are a combination of moderate GDP growth, supportive oil prices and slowing domestic demand,” said Artem Frolov, a Moody’s Vice President — Senior Credit Officer.
For Russia, supportive oil prices and low inflation will underpin GDP growth of around 1.6% in 2019 (down from 1.8% in 2018). Expected state-sponsored development projects would support otherwise weak domestic demand, but the threat of new sanctions weighs on business confidence and investor appetite.
For Kazakhstan, supportive oil prices, rising oil output and recovery in non-oil economy will support GDP growth of 3.5% in 2019 (down from 3.7% in 2018), but recent tenge depreciation will weigh on consumer confidence and domestic demand.
For Ukraine, GDP growth will slow to 3.2% in 2019 from 3.5% in 2018 on slowing reforms, political and geopolitical uncertainty weighing on investment, and challenging demographics. While domestic demand improved and inflation declined, event risks remain high and the banking system weak. -0-
