World Bank says Belarus’ GDP to grow slightly in 2023

April 7, BPN. Belarus’ economy will grow by 0.6 percent in 2023 due to expected recovery in the petrochemical, machinery and food processing industries that are oriented towards Russia, says a recent World Bank (WB) report.

At the same time, the medium-term outlook remains bleak, the analysts said, citing the inability to adjust to Western sanctions, potential new sanctions and “negative spillovers from the Russian economy.” Current economic policies designed to spur growth at the expense of maintaining macroeconomic and financial stability may also represent a risk, the WB warned.

Parallel imports would not fully replace old supply chains and logistics, resulting in a negative impact on producers, the analysts said.

Private sector growth will be restricted by the increased taxes to self-employed individuals and the elimination of the simplified tax regime for individual entrepreneurs, the report noted.

Belarusian GDP fell by 3.6 percent in January-February after a 4.7 percent drop in 2022. The government projects a 3.8-percent economic growth for 2023.