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EEC considers measures of macroeconomic and monetary policy to ensure EAEU countries’ economic stability

EEC considers measures of macroeconomic and monetary policy to ensure EAEU countries’ economic stability

4/14/2020
Spreading COVID-19 coronavirus caused global supply-chain disruptions, instability in the financial markets and had a negative impact on key economic sectors. Forecasts for the economic situation development associated with the pandemic show that international trade may decline by 15%-35% in 2020.

Maintaining strict social distancing measures costs an average of 2% of GDP per month for much national economies, there is a sharp decline in economic activity in the European Union, drop in economic activity in China, which account for the bulk of foreign trade of the Eurasian Economic Union countries. Commodity prices may remain low for a long time due to falling demand.

The EAEU States have adopted and are implementing urgent temporary anti-crisis and stabilization measures aimed at ensuring economic stability amid the pandemic development. Additional
measures in the sphere of macroeconomic and monetary policy to be applied by countries during the crisis are proposed for consideration. These include: stabilizing the exchange rates of national currencies, neutralizing speculative attacks, protecting the financial market from destabilization threats, ensuring the security and stability of the EAEU monetary and financial system.

Negative trends in the Union countries' economies can be compensated by expanding mutual trade, increasing economic cooperation with the Shanghai Cooperation Organization countries and intensifying the coupling of the EAEU and the Belt and Road Initiative. The high-priority task is to adopt Strategic Directions for Developing the Eurasian Economic Integration until 2025, and to immediately implement the measures provided therein.​