Boston, MA -- (SBWIRE) -- 06/11/2013 -- Core Views
Consumer price inflation is set to continue its downward trajectory through 2013, reaching 15.0% by year-end as imported wheat prices moderate and the cost of Russian gas is cut. President Alexander Lukashenko has reiterated his government's commitment to countering price rises, advocating 'more aggressive steps' to reduce inflationary pressure. However, with our forecast for the Belarusian ruble to depreciate and the refinancing rate to be cut by a cumulative 15 percentage points (pp) this year, risks remain to the upside.
We project private consumption to be a key driver for Belarusian real GDP growth in 2013 as prices continue to fall in line with declining inflation. Lower Russian gas prices in 2013 should translate into higher discretionary consumer spending in the coming months. Increased investment from China in Belarusian industries may provide the sector with much needed impetus to modernise its outdated technology and archaic bureaucracy, however, we do not expect a modernising revolution to occur at any substantial pace.
View Full Report Details and Table of Contents
The regime of President Lukashenko will retain its status as the only political entity in the country for the foreseeable future. Opposition groups are too few in number and lack the widespread activist support required to challenge the current administration.
With this in mind we continue to project a shift in the focus of Belarusian economic and political policy away from the EU, which has placed various sanctions on exporters as well as those within the Belarusian regime, and towards the cheap energy source of Russia.
Major Forecast Changes
As a result of our projection for a cumulative 15 percentage points of refinancing rate cuts during the course of the year, as well as poor overall trade figures we have revised our forecast for the Belarusian ruble to average BYR8,735/US$ and BYR8,725/US$ in 2013 and 2014 respectively, from BYR8,385/US$ and BYR8,100/US$ in our previous forecast
Key Risks To Outlook
The policies of the government and central bank will continue to present the most prominent risks to the Belarusian economy over the course of 2013, with the possibility of overly loose monetary policy, in the pursuit of faster economic growth, risking an inflationary relapse and a sell-off of the Belarusian ruble.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Country Reports research reports at Fast Market Research
You may also be interested in these related reports:
- Brazil Business Forecast Report Q3 2013
- Germany Business Forecast Report Q3 2013
- Hungary Business Forecast Report Q3 2013
- Philippines Business Forecast Report Q3 2013
- Russia Business Forecast Report Q2 2013
- Cote d'Ivoire Business Forecast Report Q3 2013
- Trinidad & Tobago Business Forecast Report Q2 2013
- Singapore Business Forecast Report Q2 2013
- Bulgaria Business Forecast Report Q3 2013
- Chile Business Forecast Report Q3 2013