Moody`s: Growth rate in Central and Eastern Europe to slow down in 2019

15.11.2018,16:28


November 15, Fineko/abc.az. Rating agency Moody`s believes that credit conditions in the CIS countries, Central and Eastern Europe will be generally stable in 2019.

Moody`s Investors Service says in a new report that credit conditions for emerging markets in 2019 will be less favorable due to some factors.

“Credit conditions for emerging markets in 2019 will be more challenging as global growth slows, financial market volatility continues, interest rates rise and trade protectionism and geopolitical tensions heighten.

Nonetheless, the rating agency projects a stable outlook for Central and Eastern Europe and the Commonwealth of Independent States.  The outlook incorporates the various buffers that debt issuers in the region have against external challenges, such as strong balance sheets, supportive policy and access to a growing domestic market,” the report says.

According to Moody`s Managing Director Atsi  Sheth, relatively robust growth in Central and Eastern Europe and in the Commonwealth of Independent States will offer credit support to issuers in the region. However, tightening global liquidity,  global trade friction and geopolitical issues, including potential  sanctions on Russia, pose risks.

Moody`s expects that growth to slow but remain healthy at 3.7%  for Central and Eastern Europe in 2019.

Meanwhile, Russia's growth will remain broadly stable at 1.8% in 2018 and 1.6% in 2019, anchoring regional growth among other Commonwealth of Independent States members at almost 3.5% this year and next through its trade and financial ties.