Georgia and Armenia are reducing their budget deficits, Fitch Ratings says in its forecasts for 2012. Both states gained benefits from support of international organizations during the crisis, but face a more complicated goal of reducing foreign vulnerability, Business Georgia reports.
Fitch expects a growth rate of 3.5% in Russia in 2012. Resource-rich Kazakhstan and Armenia have positive forecasts against a background of strengthening sovereign balances,
Fitch says that the CIS may be influenced in 2012 by disputes around the Russian parliamentary polls of December 4.
Russia and the CIS states are less affected by instability in the eurozone than Eastern European states. Growth in Central and Eastern Europe will be dragged by poor growth of bank credit. Subsidiary structures in the eurozone have 50-90% assets of bank systems of 8 states of Central and Eastern Europe, except the Baltic states.
Fitch Ratings confirmed long-term default emitter in foreign currency at BB- with a stable forecast in Armenia in September. The short-term rating at B and country ceiling at BB.
