Gov plans for impossible GDP growth

While the National Statistic Committee has been reporting 11.4% GDP growth, a business website estimated that GDP has gone down this year by 10-11%.

The decrease has been connected to the drastic devaluation of Belarusian ruble in October. In January a dollar costed three thousand rubles, today – it is more than eight thousand. To tackle growing inflation, Finance Ministry and the Central Bank implemented strict monetary policy, which took its toll on the GDP.

Belarusian commentators pointed how unrealistic is a prediction made by the government to reach next year 5.5% GDP growth. Such goal was set ahead of the cabinet by president Lukashenka, who also suggested the way to meet the end – printing more money.

Such policy will lead to a drastic inflation hike, even up by 50-100%, according to an economist quoted by Nasha Niva newspaper. The estimate stands in opposition to those made by the government, which plans for the 19-22% inflation increase.

“We have to maintain 5.5% GDP growth! The prime minister knows about my expectations. And for those who disagree or think they cannot [achieve such growth] – we will find a different job!” – president Lukashenka told his ministers recently.

Michał Janczuk (TV Belsat)

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