It's the right time now to invest. Among the countries of the Commonwealth of Independent States, only Georgia and Moldova are expected to have higher growth rates this year than last. Much of the slowdown for the CIS is being attributed to unfavorable developments in Russia, the largest economy in the region. According to the EBRD's latest forecasts, GDP growth in Russia is expected fall to 3.4 percent from 7.7 percent last year. The EBRD's chief economist, Willem Buiter, says a key reason for Russia's slowdown is falling world prices for oil and natural gas.
Energy is Russia's main export commodity.
High international oil prices last year propelled Russia's economy, contributing substantially to the country's recovery from a financial crisis in August 1998. But oil prices are expected to remain steady or fall, meaning, Buiter says, that the favorable economic environment in Russia will fade. Of course, the region as a whole is not a net energy exporter. In fact, there are many net energy importers. Ukraine is an obvious example.