Since the economy stabilized some last year, Eurasian Development Bank's (EDB) member countries will experience decreased inflation with key rates dropping gradually, according to a bank press release.
The reduction in inflation and key rates will create even more favorable conditions for economic recovery, according to The Macroeconomic Review prepared by economists from EDB.
The report implies that Russian economic recovery will also lead to economic growth in EDB countries due to exports. Moody's has raised its economic outlook on Russia from negative to stable, while Standard & Poor's changed its rankings from stable to positive, according to the press release.
In Kazakhstan, economic recovery is also becoming more stable as inflation slows. Even so Standard & Poor's still shows a negative or "on credit watch" for a majority of the major banks in the region.
Armenia's economic activity also improved greatly over the last year.
"Overall, economic recovery in the EDB countries is going forward, but still has room for more progress," Yaroslav Lissovolik, the chief economist at EDB, said. "It is unlikely that reduced inflation and key rates will alter the medium- and long-term economic dynamics without additional impetuses. From this point of view, the recovered mutual trade between the region's largest economies and the furtherance of investments in the context of integration can both promote accelerated growth and ensure its sustainability in the medium and long term."