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Experts predict inflation to accelerate in latter half of 2010

The Minsk-based Institute of Privatization and Management predicts the inflation rate to accelerate significantly in Belarus in the latter half of this year, expert Dzmitry Kruk said at a “roundtable” discussion held in the capital city on Thursday, as quoted by BelaPAN.

“According to our point estimates, the inflation rate will total 11.9 percent this year,” Mr. Kruk said.

Additional measures to stimulate the economy will only pose more serious challenges to long-term performance indicators, the expert said.

“Banks’ assets deteriorate, and I think that increasing bank risks constitute the most serious problem for the Belarusian economy,” he noted. “The government’s external debt grows bigger as well. And allegations that the external debt is small and we can continue to amass it are not justified.”

Hleb Shymanovich, another economic expert at the Institute, predicted the government’s consolidated budget deficit to reach this year three percent of GDP, far above the previous year’s level. “In 2011, we expect the deficit at 1.8 percent,” he said.