MINSK, 31 August (BelTA) – The Eurasian Development Bank (EDB) has improved its forecast of Belarus' GDP growth in 2018 up to 3.8%. The inflation forecast has been reduced to 5.1%, BelTA learned from the latest quarterly macroeconomic review released by the EDB.
The GDP growth forecast has been increased by 0.1 percentage points – from 3.7% to 3.8%. The GDP growth forecast for the year 2019 stands at 1.7% (down from 1.9%), with the forecast for the year 2020 at 2.1% (up from 2%).
The high growth rate will be fueled by continued consumer activities, growing monetary income of individuals, and expanding lending. As for external demand, the steady growth of economies of Belarus' main trade partners and rather favorable external conditions will provide support. In the medium term Belarus' economy growth rate will try to match the potential level, which the EDB estimates at 2%. The potential growth rate may be revised upwards as structural economy changes are implemented, the review reads.
The slower inflation processes registered in Q2 2018 are reflected in the downward revision of this year's inflation forecast. Thus, the Eurasian Development Bank expects Belarus' inflation to be 5.1% in 2018 instead of 6%. The forecasts for the years 2019 and 2020 remain unchanged – 5.3% and 4.9% respectively.
