MINSK, 23 May (BelTA) – Inflation in Belarus is expected to stay as low as 5.5-6% in 2017, BelTA learned from Belarusian First Deputy Economy Minister Dmitry Krutoi during the roundtable session held on 23 May to discuss economic prospects and challenges concerning the forecast of Belarus' sovereign rating.
According to the source, in January-April 2017 the annualized growth of consumer prices dropped to 6.3% while the target set for the year stands at 9%. In January-April 2017 inflation totaled 2.4% as against December 2016. The government expects inflation as low as 2.5% in January-May. “In summer prices for vegetables traditionally change. This is why in some months we can expect even deflation like it happened in August 2016. In accordance with current estimates we expect the annual consumer price index to hit 5.5-6%. It will be kind of a record,” stressed Dmitry Krutoi.
The official noted that for the first time in two years the gross domestic product has been demonstrating positive figures for the second month in a row. In January-April Belarus' GDP growth totaled 0.5%. In Q1 2017 Belarus' GDP grew by 0.3%. “We see that it is quite possible to hit the annual GDP target of 1.7%. If positive trends continue in May-June, first of all, in the processing industry, and if GDP growth reaches 0.7% in January-May and 1% in H1 2017, then the annual target of 1.7% will surely be hit,” he explained.
Speaking about the branches of the economy that have had a negative impact on the country's GDP so far this year, Dmitry Krutoi mentioned civil engineering, water supply, and trade. “Meanwhile, industrial output rose by 5.4% in January-April. The processing industry was the main driver here,” he said.
