IMF May Revise Forecast For Belarus GDP Growth For 2020 - Adviser

The International Monetary Fund (IMF) may revise the forecast for the growth of the Belarusian economy for 2020 after the fund's technical mission completes its visit to the country, an adviser to IMF Executive Director Alexander Zaborovsky, told reporters on Thursday

MINSK (UrduPoint News / Sputnik - 31st October, 2019) The International Monetary Fund (IMF) may revise the forecast for the growth of the Belarusian economy for 2020 after the fund's technical mission completes its visit to the country, an adviser to IMF Executive Director Alexander Zaborovsky, told reporters on Thursday.

In its October report, the IMF slashed its Belarus GDP growth forecast for 2020 to 0.3 percent from 2.2 percent. The Belarusian government expects the economy to expand by 2.8 percent next year. An IMF technical mission is currently working in Belarus.

"As an expert, and not an official representative of the IMF, I can say that there is a feeling that the forecast will be revised based on the results of the mission on the fourth article [of the IMF charter] and publication of the [mission's] report," Zaborovsky said.

He recalled that the IMF's technical mission was preparing for an assessment mission's visit to the republic as part of the fourth article of the fund's charter. The dates of the visit have not yet been determined. Experts from the IMF and Belarus are now discussing macroeconomic policies, the forecast of economic development, and the financial sector.

Zaborovsky emphasized that the discussion was proceeding in a constructive manner.

"Thanks to Belarus-IMF dialogue, the fund has got a lot more information to update this forecast, and this is a very good sign.

The intensive discussions that are going on will allow the fund's mission to get the necessary information that will allow the reconsideration of this forecast," he said.

Commenting on the possibility of future negotiations between Belarus and the IMF on a loan, he noted that the fund would consider the application if it comes from the Belarusian side.

"Before such an appeal, a reconciliation of positions always takes place. It is impossible to discuss program issues if the assessment of the balance of payments, factors, risks, and economic policy measures differ significantly. The ongoing work will help to bring the positions together," he stressed.

The expert also expressed the opinion that the forecasts of the fund and the country's authorities within the framework of the economic development scenario, which form the basis of the budget, "can be very close."

Belarus was previously developing a structural reform program together with IMF experts, but subsequently was forced to abandon it, although a loan of $3 billion could be allocated for it at 2.28 percent per annum for a period of 10 years. Earlier in the day, Belarusian First Deputy Prime Minister Alexander Turchin said Minsk had not yet raised the issue of launching a new program of cooperation with the IMF, which can be supported by a loan from the fund.