Фото: ЕАБР
Consumer demand is supporting growth in the Belarusian economy. The slowdown in its growth rate in August was linked both to the timing of the harvest and to a cooling in industrial and construction activity. This was the conclusion reached by analysts at the Eurasian Development Bank (EDB) in their weekly review of the economies of the bank’s member states.
As a reminder, Belarus’s GDP growth rate was 1.9% in January-August, compared with 2.1% in January-July.
“The slowdown is linked to the normalization of grain harvesting timelines: the expansion of agricultural production slowed to 6.5% year-on-year from 12.9% year-on-year, as well as to a cooling in activity in industry and construction,” the review says.
The EDB noted an acceleration in retail trade turnover and identified consumer demand as a driver supporting growth.
“Consumer demand is supporting the economy. Retail trade turnover increased by 8.4% year-on-year from 8.1% year-on-year, supported by an 8.1% year-on-year increase in real disposable incomes in January-July,” the EDB said.
The bank’s analysts believe that, in the absence of new shocks, Belarus’s GDP growth rate could exceed 2% for the year.