IMF sharply worsens forecast for Belarusian economy

Photo: Belsat

The International Monetary Fund has significantly worsened the forecast of the Belarusian economy in 2021 amid the global recovery of the world economy after its decline due to the pandemic coronavirus in 2020.

According to the updated IMF forecast, Belarus’ GDP is expected to decrease by 0.4% this year after its reduction by 0.9% in 2020. In October, the fund predicted the growth of the Belarusian economy by 2.2% in 2021. In 2022, presumably, Belarus’ GDP may grow only by 0.8%.

Also, the IMF has worsened the estimate of inflation in Belarus. Currently, consumer price inflation is projected at 6.9% (previously – 5.1%). Inflation may slow down to 5.5% next year.

Meanwhile, the assessment of the current account deficit of Belarus in 2021 has been improved to 0.3% of GDP from 2.2% of GDP. The current account deficit is projected at 0.7% of GDP in 2022.