Updated at 12:42,19-04-2021

Expert: Belarusians will face “shock therapy“ in the economy


National Bank strives to pursue the tight monetary policy, meanwhile, the government and the head of state are demanding higher wages and to stop the inflation at the same time. Economist Leonid Zlotnikov is sure, it's impossible to solve these problems at the same time.

Recently, experts from the International Monetary Fund said, they see a risk in Belarus for a new round of unwinding of inflation and devaluation. "The desire to achieve high rates of economic growth and wages can cause a new round of unwinding of inflation and devaluation, and the threat to budget and debt sustainability", the experts of the fund note. According to the IMF, GDP growth in Belarus in 2012 will amount to 3% versus 5.3% in 2011, while inflation will decline from 108.7% to 38.4%.

Leonid Zlotnikov believes, "the shock therapy" in the economy awaits Belarusians . "This is a very tight monetary policy, "expensive money". Once it was in Poland. We have avoided this, but now we have to pay for what we have avoided by moving away from market reforms, by the return to socialism. And we are nowhere to hide, we will go this way one more time - as is was in Poland", the expert believes.

The economist points out, it is now important to protect the unsecured citizens , and to increase aid to the unemployed. "Unemployment is to rise, if we'll continue "the shock therapy", but if we don't, then the same as it was in 2011 will happen: inflation and devaluation, the forced reduction in living standards", said Leonid Zlotnikov.