No economic growth in Belarus in 2016
Belarus’ socio-economic development forecast for 2016 envisages GDP growth at 0.3%. In 2015, for the first time in the last 15 years, GDP will reduce by at least 3.5%. Amid low base in 2015, the minimum growth forecast for 2016 means Belarus lacks drivers of economic growth in order to keep large giants of mechanical engineering afloat, . If oil prices continue to fall, the national currency exchange rate may be adjusted in order to improve competitiveness of the Belarusian exports.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.