Rising debts, inflation starting to affect economy – think tank

December 22, Pozirk. The government’s reliance on strong domestic demand paid off this year but the economy is starting to feel the negative effects, said Košt Urada, a think tank that analyzes Belarusian finances.

In January-November, restaurant industry sales rose by 10.3 percent to 4.6 billion rubels (about $1.5 billion), according to the official statistics. Belarus’ retail trade grew by 8.2 percent to 68.7 billion rubels ($21.6 billion), while wholesale trade amounted to 147.2 billion rubels, growing by 13.5-percent year on year.

Most of the Belarusian retailers were profitable this year with only some 20 percent posting losses, First Deputy Prime Minister Mikałaj Snapkoŭ told Alaksandar Łukašenka on December 21.

Officials are optimistic and predict economic growth for 2024 as trade is currently at its peak, benefitting from rising incomes and lending expansion, Košt Urada said. However, the debt burden and inflation will weigh heavily on the econmy in 2024, it warned.

The government’s ability to keep inflation in check can play a crucial role as budgetary support and purchasing activities start to decline, the experts noted.