The World Bank has published a new economic update for Belarus, BelTA has learned.
According to the document, Belarus' GDP growth is projected at 1.8% in 2019, 1.3% in 2020, and 1.3% in 2021. The WB experts say that the country's economic growth will largely depend on external factors, including trade conditions and Russia's “tax maneuver”.
Consolidated government revenues recorded real growth due to higher real tax revenues. Quantitative targeting framework is keeping inflation at historically low levels. As the policy rate remained virtually unchanged throughout 2018, credit to the economy grew by 10 percent p.a., and especially to households by 28.2 percent in nominal terms.
“It is essential to strengthen competitiveness and, thus, export more products to a wider range of countries. Further improving the business environment and intensifying the restructuring of companies, especially state-owned companies, would help producers innovate and export more,” said Alex Kremer, World Bank Country Manager for Belarus. The WB stressed that growth prospects depend on implementation of policies for greater economic efficiency. Recent measures to liberalize economic activity and growing exports of ICT services, should contribute to stronger foreign trade.
The WB emphasizes the need to strengthen social safety nets that protect the most vulnerable, uphold living standards, and help people with job mobility. A key recommendation of the report is the need to increase the share of expenditure on social assistance that targets low-income groups in the population.
Since Belarus joined the World Bank in 1992, lending commitments to the country have totaled $1.7 billion. In addition, the country has received grants in the total amount of $31 million. The active investment lending portfolio financed by the World Bank in Belarus includes eight operations in the total amount of $890 million.
