Forecast-2008: stagnation of economy and ruble devaluation

• 28.12.2007, 13:23

Yaraslau Ramanchuk, president of the Scientific Research Mises Center, said the forecast of economic situation in Belarus for 2008 is not encouraging.

According to the economist, the stagnation of economy is foregone, GDP growth will certainly decline, rate increase of debt accumulation is absolutely evident, probability of devaluation of Belarusian ruble is 80 per cent, Deutsche Welle reports.

How the authorities are going to cope with it, the expert wonders. “With an unprofessional approach, which is the most probable to be used, the situation will worsen yet in 2008.”

The economist added that it may be a liquidity crisis of banking system, change-over of Belarusian budget to the regime of chronic deficit, personal incomes standstill, probable salary debt accumulation and thus deterioration of the competitivity of Belarusian goods in the context of new prices for energy.