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Republic of Belarus :, Staff Report for the 2014 Article IV Consultation

KEY ISSUES Context: Attempts to boost activity with policy stimulus, in lieu of much-needed structural reform, have failed to raise growth and contributed to large external imbalances. Adverse developments in the region further cloud the outlook. High financing needs and low buffers leave Belarus highly dependent on external financial support. The risk of disorderly adjustment remains high. Challenges: Mitigating immediate risks and facilitating external adjustment through a sharp change in macroeconomic policies. Advancing the transition to a market-based economy to raise sustainable growth. Policy recommendations: • Halt wage increases and reduce subsidized lending to slow demand growth; • Reduce foreign exchange interventions and tighten monetary policy to facilitate external adjustment; • Enhance market orientation of the economy through a rapid phase-out of price controls and mandatory targets and by privatization of state-owned enterprises
Table Of Contents
Cover; CONTENTS; CONTEXT; RECENT DEVELOPMENTS; OUTLOOK AND RISKS; POLICY DISCUSSIONS; A. Fiscal Policy: Containing Lending Programs and Wages to Curb Demand; BOXES; 1. Possible Spillovers from Regional Geopolitical Tensions; 2. Wage Setting: The Role of the Government; B. Monetary Policy: Reducing External Imbalances and Inflation; 3. External Stability Assessment; C. Banking Sector: Safeguarding Stability and Curbing Dollarization; 4. Potential Impact of Exchange Rate Depreciation; D. Structural Reform: Raising Sustainable Growth; 5. Key Recommendations from Joint World Bank-IMF Mission
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (65 p.)
Specific Material Designation
Form Of Item

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