The world Bank sharply downgraded the Outlook on the Belarusian economy

The world Bank has revised the Outlook on the Belarusian economy to the downside. As noted in the press release, the GDP of Belarus will be reduced in 2016 by 3%, whereas previously expected a decrease in the amount of 0.5%.

Next year the decline will continue at the rate of 1%, as the economy continues to influence external factors, the document says.

Last year the Belarusian economy fell by 4%, but in Minsk hoping for a growth of 0.3 percent, Reuters reminds. The country’s leadership is trying to obtain international loans, including $3 billion from the IMF, says the Agency, noting that authorities began cautious economic reforms, such as increased retirement age and reduced the government’s control of currency market.

According to the Manager of the world Bank for Belarus, Yong Chul Kim, “is now distinctly obvious willingness to pursue structural reforms to increase the competitiveness of the economy”. He also said that the inflation forecast for 2016 was little changed compared to last year, when prices increased by 15%. This year it will amount, according to the world Bank, 14%.

In early April Prime Minister of Belarus Andrei Kobyakov said that the country’s economy could not sustain the low cost of gasoline in Russia. Belarus receives Russian oil and then sells back its by-products. Kobyakov noted that the quality of Russian oil had deteriorated and trade petroleum products are sold at a loss. “If we get a ton of gasoline minus $100, that no economy can survive,” said the Prime Minister.