23 Jun 2023 15:20

Economic activity in Belarus rebounding rapidly - Eurasian Development Bank

MINSK. June 23 (Interfax) - Economic activity in Belarus is recovering at a rapid pace, the Eurasian Development Bank (EDB) said.

"Economic activity in Belarus is rebounding rapidly. The growth forecast has been improved," EDB said in a statement.

"The economy is quickly adapting to the conditions that changed in 2022. New supply chains are being built. Consumer and investment demand is recovering against the backdrop of low interest rates on loans and the increase in budget spending. GDP growth will peak in the second quarter and, according to our estimates, will stand at over 5% year-on-year," it said.

"The recovery of demand in Russia and the partial transformation of logistics chains will help the Belarusian economy to grow 2.2% in 2023. The [growth] rate will subsequently stabilize at around 1%," EDB said in its forecast.

At the same time, analysts predict that business activity both in Belarus and Russia, which is its main partner, in the mid-term "will continue to be held back by heightened uncertainty, difficulties with deliveries of investment and intermediate products, and restricted access to advanced technologies."