Among the economies in transition, growth in the CIS slowed down sharply in 2014. The geopolitical tensions in the region resulted in a difficult external environment with high levels of uncertainty. Economic activity in the Russian Federation came to a standstill, which also lowered growth prospects for other economies in the region. In Ukraine, a severe output contraction followed years of sluggish expansion. Smaller CIS economies were affected by a contraction in the inflow of remittances. The prospects for 2015 are weak: near-zero growth is expected in the Russian Federation as the high cost of capital will deter private investment, and the possibility of deeper recession exists in Ukraine. However, some of the Central Asian energy exporters will continue to see strong growth. Inflation in the CIS accelerated in 2014, as currency depreciations created price pressures in many countries, including in the Russian Federation. Despite the slowdown in economic activity, the unemployment rate in the Russian Federation reached historical lows during the year. By contrast, labour market conditions worsened in Ukraine and in lower-income Central Asian countries. The aggregate GDP growth of the CIS and Georgia is expected to strengthen only modestly to 1.1 per cent in 2015 and 2.1 per cent in 2016, compared with the estimate of 0.8 per cent for 2014.