Economic Recession Expected in Transnistria by 3-5%
OREANDA-NEWS. December 29, 2014. According to the second edition of "Economic regional Newspaper: the Transnistrian region", prepared by the independent analytical center, the main reason is that the factors that can mitigate negative shocks of Transistrian economy in 2014.
For example, economic problems in Ukraine and Russia, alongside with the slow recovery of the EU economy will weaken external demand and the efforts of the authorities which are trying to shift from the Western to the Eastern market. It is also affected by the devaluation of the Russian ruble on the welfare of migrant families.
At the same time, it is noted that the Transnistrian budget for 2015 was approved with a deficit of about 11% of the region's GDP (maximum level - 3%), and its financing is covered mainly due to direct and indirect financial support from Russia. However, budgetary constraints in Russia grow as the needs of the Transnistrian region in funding. According to experts, in 2015 it is expected tighter fiscal policy.
The likely increase of tariffs for communal services and delays in the payment of salaries in the budgetary sector will have a negative impact on domestic demand. On the background of the expected decline in consumption and exports, growth prospects and investment is unlikely.
Researchers pay attention, that in 2015 in Russia recession will limit and the investment appetite of banks and other companies in the region that receive Russian investments. Besides all that, the economy may be affected by the less favorable climatic conditions.
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