WB affirms outlook for Belarus GDP growth in 2021 at minus 2.2%
<p> MINSK, Jun 9 - PrimePress. The World Bank (WB) has left unchanged its forecast for Belarus GDP growth in 2021 at minus 2.2% year on year, reads the WB Global Economic Prospects published on June 8. </p> <p> </p> <p> As previously reported, the World Bank improved its forecast for Belarus’ GDP dynamics in 2021 by 0.5pp to minus 2.2% year on year, the outlook for 2022 has been upgraded by 1pp to 1.9%. In the meantime, WB analysts now expect Belarus’ GDP to grow by 1.3% in 2023. </p> <p> </p> <p> The WB outlook referred to the following factors as the key drivers of Belarus’ sustained recession in 2021 and weak recovery thereafter: ongoing political tensions, continued headwinds from the Russian “tax manoeuvre”, and lack of structural reforms. </p> <p> </p> <p> WB experts believe that recently announced tax increases – to contain the fiscal deficit and that of the pension system – will hurt an already struggling private sector, hit by the absence of support during the COVID-19 shock. Elevated market interest rates and falling investor confidence will dampen domestic and foreign investment. </p> <p> </p> <p> “A GDP contraction of 2.2 percent is projected in 2021. With weak domestic demand expected to persist, the recovery is expected to be modest in the medium term; however, slow growth will also help to compress imports and the current account deficit.” The World Bank expects Belarus’ exports to grow by 2.1% in 2021, with imports contracting by 1.1%. </p> <p> </p> <p> The World Bank believes that the authorities’ actions to control prices will not stop inflation, and expects inflation in Belarus to be 8.2% in 2021, 6.1% in 2022 and 5.7% in 2023. </p> <p> </p> <p> As previously reported, Belarus’ GDP grew by 2.5% year on year in Jan-Apr 2021. The government of Belarus approved a medium-term financial program of the national budget for 2021-2023 under Resolution #227 of April 20, 2012, according to which the Belarusian GDP growth is planned at the level of 1.8% in 2021, 2.9% in 2022 and 3.8% in 2023. End </p>
2021-06-10
Primepress
WB affirms outlook for Belarus GDP growth in 2021 at minus 2.2%
MINSK, Jun 9 - PrimePress. The World Bank (WB) has left unchanged its forecast for Belarus GDP growth in 2021 at minus 2.2% year on year, reads the WB Global Economic Prospects published on June 8.
As previously reported, the World Bank improved its forecast for Belarus’ GDP dynamics in 2021 by 0.5pp to minus 2.2% year on year, the outlook for 2022 has been upgraded by 1pp to 1.9%. In the meantime, WB analysts now expect Belarus’ GDP to grow by 1.3% in 2023.
The WB outlook referred to the following factors as the key drivers of Belarus’ sustained recession in 2021 and weak recovery thereafter: ongoing political tensions, continued headwinds from the Russian “tax manoeuvre”, and lack of structural reforms.
WB experts believe that recently announced tax increases – to contain the fiscal deficit and that of the pension system – will hurt an already struggling private sector, hit by the absence of support during the COVID-19 shock. Elevated market interest rates and falling investor confidence will dampen domestic and foreign investment.
“A GDP contraction of 2.2 percent is projected in 2021. With weak domestic demand expected to persist, the recovery is expected to be modest in the medium term; however, slow growth will also help to compress imports and the current account deficit.” The World Bank expects Belarus’ exports to grow by 2.1% in 2021, with imports contracting by 1.1%.
The World Bank believes that the authorities’ actions to control prices will not stop inflation, and expects inflation in Belarus to be 8.2% in 2021, 6.1% in 2022 and 5.7% in 2023.
As previously reported, Belarus’ GDP grew by 2.5% year on year in Jan-Apr 2021. The government of Belarus approved a medium-term financial program of the national budget for 2021-2023 under Resolution #227 of April 20, 2012, according to which the Belarusian GDP growth is planned at the level of 1.8% in 2021, 2.9% in 2022 and 3.8% in 2023. End