Belarus inflation to slow in H2 - Econ Ministry
MINSK. June 30 (Interfax) - Inflation in Belarus will slow dramatically in the second half of 2011, but will still amount to nearly 40% for the full year, Economy Minister Nikolai Snopkov said.
"We estimate that inflation will be 37%-39% this year," Snopkov said in parliament on Thursday.
At a press conference on Wednesday, Snopkov said inflation in the first half of the year would be 33%-34%.
Asked about the low inflation rate in the second half implied by those two forecasts, Snopkov said: "We are confident that prices will reach a balance."
Belarus needs to borrow no more than $3 billion before the end of the year in order to balance the economy. "We don't see the need for a greater amount," he said.
The systemic economic crisis unfolding in Belarus is a result of erroneous monetary policy, First Deputy Prime Minister Vladimir Semashko said. "The problem is not in the real sector of the economy: industry is operating normally. The problem is in the less-than-skillful handling of monetary policy," Semashko told journalists on Thursday.
Foreign currency receipts increased 65% in the first five months of 2011 year-on-year and GDP growth was 12.5% in that period. "That is fantastic, a fantastic pace. Not even China has that. On the other hand, we have a monetary crisis," he said.
The Economy Ministry forecasts that GDP growth in the first half will amount to 11%, "in connection with government efforts to restrain domestic demand." However, the Economy Ministry does not rule out that the GDP growth rate will decline to 1%-3% in 2011 from 7.6% in 2010.