EDB: Belarus needs realistic economic policy
The Eurasian Development Bank has released a study of economic situation in Belarus in the "CIS Macromonitor, March 2013" report
The EDB experts see two major problems - high inflation and the balance of payments deficit. Although the inflation has remarkably decreased in 2012, the growth of prices in the country remains high - an average of 1.7% per month. As the balance of payments in the second half of 2012, it is much worse - the current account deficit makes 7.7% of the GDP, while in 2011 there was even a surplus.
Both of these problems occurred because Belarus has started active lending again. Also, worsening of the oil trade conditions between Belarus and Russia gave a negative impact.
According to the experts’ conclusions, the economic situation is not very
unfavorable, or heavy to manage. "In case of pursuing a realistic economic
policy by the government and the central bank, the republic can restore
stability in the economy and move towards sustainable, although moderate in
speed, growth in the upcoming 1-2 years", - BelaPAN quotes EDB materials.
