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May 15 – May 21, 2017

World Bank expects Belarusian economy to start growing only in 2018

The situation has not changed

According to the World Bank’s economic review, the economy of Belarus is expected to decline by 0.4% in 2017, weak economic growth is possible in 2018 at 0.7%. The reasons for GDP decline in 2017 would be limited domestic demand and low investment. It is expected that risks would retain due to unresolved issues with the rehabilitation of problem enterprises. A significant amount of public debt servicing would require the government to raise additional funds, including for the repayment of the Eurobond issue at USD 800 million in January 2018. The state is unlikely to reduce its share in the economy, which would require additional resources to support unprofitable enterprises and would limit the opportunities for economic recovery. The resumption of economic growth in 2018 would depend on the ability of Belarusian enterprises to diversify export markets for their products and on the state efforts to clean up the economy from distressed enterprises and accumulated distressed debts.

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