Inflation in Belarus projected to stay below 1.5% per month in 2012

2011-11-08 17:55:06

In 2012 average monthly inflation in Belarus is projected to stay below 1.5%, Prime Minister Mikhail Myasnikovich said at a meeting of the Council of Ministers, which considered the forecast of the social and economic development, national budget and monetary policy guidelines for 2012.

The head of government stressed that the main task for the next year is to reduce the rate of inflation compared to 2011. “If we fail to deal with the inflation, then we will fail to ensure stability. Therefore, all components of inflation should be restricted and taken under strict control,” he said. Next year consumer price growth should not exceed 19% for the year, or 1.5% per month, emphasized the Prime Minister. “This is, of course, a high rate of inflation, but further compressing of the money supply may result in adverse consequences for the economy,” he said.

According to Mikhail Myasnikovich, Belarus is going to implement the concept of balanced development next year. The aim is to strike a balance between production and consumption, promote structural modernization, create and engage non-emission sources of funding so that 2012 and subsequent years should become a period of sustained economic development for Belarus. The growth of the economy should be high-quality, innovative. New projects must pay back, economic entities should be well-performing, and real income growth should be pegged to the growth of productivity

The Prime Minister stressed the importance of switching into a foreign trade surplus. This is seen as the basis for stabilizing the exchange rate. “This is the fundamental task of the foreign trade, without exaggeration. There are simply no alternatives,” Mikhail Myasnikovich said. He noted that the next year will be challenging for the world economy and Belarus will not shy away from the impact of the world processes. “Therefore the domestic consumption should be rational. We need to prioritize export and make sure its growth overruns that of import,” the Prime Minister said.