Former Soviet Union countries experience slower growth
GDP and industrial output growth in the Commonwealth of Independent States (CIS), formerly the Soviet Union, slowed in the first eight months of this year according to data from the CIS Intergovernmental Statistical Committee.
GDP in the CIS grew by slightly more than 6% year-on-year in the eight months compared with growth of 8% in the same period in 2000. Growth in industrial output fell to 8% from 10% last year and capital investment was up 10% compared with an increase of 16% in January-August 2000. Growth in foreign trade growth was fuelled largely by imports, while export growth slowed somewhat, the statistics committee said.
Despite a gradual drop in interest rates, loans remain out of reach for most companies and lending to the real sector of the economy is still largely short-term. While a number of CIS countries, especially Russia, are working on restructuring foreign debt, there are still acute problems with debt servicing, which puts considerable pressure on national budgets.
Industrial production in the eight months period grew in all of the CIS except Georgia, where there was a contraction of 1.8%. Industrial output rose 16.9% in Ukraine, 15.9% in Tajikistan, 14.1% in Kazakhstan, 11.2% in Moldova, 6.3% in Kyrgyzstan, 5.8% in Azerbaijan, 5.3% in Russia, 4.3% in Belarus and 2.3% in Armenia.
GDP growth in the eight months measured 9.2% in Azerbaijan, 7.7% in Armenia, 3% in Belarus, 7.4% in Kyrgyzstan, 10.7% in Tajikistan and 10.8% in Ukraine.
In the first half of this year GDP grew 5.2% in Georgia, 14% in Kazakhstan, 3.1% in Moldova, and 4.2% in Uzbekistan. In Russia, production of goods and services in the five core sectors of the Russian economy - manufacturing, construction, agriculture, transport and retail trade - grew 5.9% year-on-year in the first eight months of the year.
