Moody's: Belarus' GDP to grow by 2% in 2013

The analysts of the rating agency have said that, this year, inflation in Belarus remained 20%, and next year it will drop to 16%. At the same time, the growth of GDP, according to Moody's, will amount to 2.5% in 2014 and 2% this year.

Moody's analysts believe that the economic growth in Belarus is closely linked with the ability to obtain external support. "The growth was dependent on the foreign aid and energy subsidies from Russia. External loans provided wage growth, high rates of loans and subsidies for households and businesses," states the Moody’s research report.

According to the analysts of the agency, this situation has led to a decrease in the competitiveness of the Belarusian economy, the growth of the current account deficit of the balance of payments and the external debt increase, reports BelaPAN.

According to the rating agency, the gold reserves of Belarus, considering the payments on the foreign debt and import volumes, remain low, which makes them "vulnerable to external shocks." The agency also draws attention to the fact that in 2013 Russia completes the provision of the $ 3 billion loan to Belarus, which was allocated in tranches over three years, under the EurAsEC Anti-Crisis Fund.

As it was reported before, the Belarusian authorities had planned the GDP growth of 8.5% for 2013. One of the key conditions for achieving high rates of economic growth was the modernization of the economy. This year, Belarus has requested $ 2.5 billion for the modernization of enterprises from Russia. However, the Russian authorities have declared that they are ready to finance only joint Belarusian-Russian projects.

Belarus' GDP growth in the first half of 2013 was 1.4%.