ArmInfo.The reduction of rates in large developed economies is gradually opening the way for developing countries to attract foreign capital. This is stated in the Macro Review of the Eurasian Development Bank (EDB) published today.
It is noted that due to high rates, the markets have been effectively closed to developing economies over the past 2-3 years (it was simply too expensive to attract). Kazakhstan was the pioneer. In early October 2024, it successfully placed dollar bonds in the amount of $1.5 billion for a period of 10 years with a coupon rate of 4.714%. This figure is practically at the lower limit of the yields of dollar 10-year government bonds of developing economies. This indicates increased interest and investor confidence in the economy of Kazakhstan.
However, the negative effect of the decline in revenues from foreign trade in raw materials may be partially offset, as the export positions of the Bank's member countries are becoming increasingly diversified, and stable demand for strategic goods continues to support foreign trade," the Macro Review says.
According to the Bank's analysts, the dynamics of economic activity in the world have not changed significantly in recent months. The GDP growth rate remains high in the US, low in Europe, and is slowing down in China. The most important macroeconomic news over the past two months has been the Fed's interest rate cut, the ECB's continued rate cuts, and the easing of monetary policy1 by the People's Bank of China. However, the expectations of EDB analysts are more conservative.
, the Review says.
The slowdown in the growth of major global economies will result in somewhat lower growth in demand for raw materials, which may affect commodity prices and, consequently, export revenues of the countries in the EDB region of operations. However, the negative effect of the decline in revenues from foreign trade in raw materials may be partially offset, as the export positions of the Bank's member countries are becoming increasingly diversified, and stable demand for strategic goods continues to support foreign trade.
The is a regular publication of the EDB, which presents an operational snapshot of the macroeconomic situation in the Bank's member countries and provides assessments of its development in the short term. The review covers Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
