Economic growth continues to slow down
Economic growth slowed down significantly due to external factors and amounted to only 1.2% in 2019. High uncertainty about future supply conditions for Russian crude oil and gas, as well as ongoing structural problems, further dampen future growth prospects.
Economic growth slowed down significantly due to external factors and amounted to only 1.2% in 2019. High uncertainty about future supply conditions for Russian crude oil and gas, as well as ongoing structural problems, further dampen future growth prospects: the forecasts for 2020 (0.9%) and 2021 (0.5%) remain at a similarly low level.
Consumer prices have grown by 4.7% in 2019, which is in line with the National Bank’s inflation target. The exchange rate remained fairly stable and international reserves reached a historic high of USD 9.4 bn in December 2019. External factors and higher wage expenditure in the run-up to the elections increased the pressure on the public budget and led to a higher budget deficit. Foreign trade was particularly weak; especially exports were unable to continue their positive trend and contracted by 2.9% in 2019.