Little change in the Belarusian economy
For years the Belarusian economy has faced the same challenges. The main input to state coffers comes from a few gas enterprises and the military industry, while many branches of the economy remain ineffective. Heavy dependence on Russia is also a serious problem. The only cure is structural reforms. Yet, seemingly there is no political will for their quick implementation.
According to official projections, Belarus is to reach 3.5 per cent GDP growth this year. Less optimistic is the forecast of the IMF which believes growth will be at only 0.7 per cent. The National Bank of Belarus, in turn, assumes inflation will not pass seven per cent. Regardless of the source, the predicted growth is not going to result in any form of structural change to the Belarusian economy. Rather it will be a reflection of global economic prosperity and higher gas prices.
According to official projections, Belarus is to reach 3.5 per cent GDP growth this year. Less optimistic is the forecast of the IMF which believes growth will be at only 0.7 per cent. The National Bank of Belarus, in turn, assumes inflation will not pass seven per cent. Regardless of the source, the predicted growth is not going to result in any form of structural change to the Belarusian economy. Rather it will be a reflection of global economic prosperity and higher gas prices.
September 1, 2018 -
Anna Maria Dyner
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Articles and CommentaryIssue 5 2018Magazine
Illustration by Andrzej Zaręba
