Such assessment is given in the agency's July report dedicated to Belarus.
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, Euroradio reports.
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 Belarusan economy, the growth of the current account deficit of the balance of payments and the external debt increase.
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.
Belarusan 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 Belarusan-Russian projects.
Belarus' GDP growth in the first half of 2013 was 1.4%.
The Belarusian government has invited the European Bank for Reconstruction and Development (EBRD) to prepare five large state-owned companies for privatization.
Officially, the unemployment in our country is reducing – if judging by the number of registrations at the labor exchange; however, the number of jobs doesn’t increase in the economy.
Recently Belarus State Military Industrial Committee announced that in the first half of 2016 its enterprises earned a net profit of $80m, thus over-fulfilling the assigned export plans by a quarter.
Poor economic conditions in the countryside, restrictions, unfair competition, inefficiency of state-owned agricultural enterprises also contribute to this ‘success story’, writes Aliaksandr Filipau.
On 20 June Lukashenka met with vice-chair and president of the Chinese CITIC Group Corporation Wang Jiong; it seems especially important in light of Lukashenka’s planned visit to China in September.
All the conditions for everyone to be able to earn a decent salary have been enabled in Belarus, however, it is necessary to make some effort to get the money, assumes the president.
Belarus is losing currency earnings – in the 6 months of 2016 the country earned 3 billion less than in the same period in 2015. Instead of removing the causes of the flop the state relies on magic.
He said Belarus would likely face economic tightening not only as a result of the coronavirus pandemic but also a Russian trade oil crisis that worsened this past winter.
In his report, philosopher Gintautas Mažeikis discusses several concepts that have been a part of the European social and philosophical thought for quite a time.
It is impossible to change life in cities just in three years (the timeline of the “Agenda 50” campaign implementation). But changing the structure of relationships in local communities is possible.