MINSK: The World Bank raised its forecast for Belarussian gross domestic product growth to 2.9 percent in 2018 from 2.1 percent, but warned that the economy remained vulnerable to currency volatility in neighbouring Russia linked to Western sanctions.
The Belarussian economy grew 2.4 percent in 2017, recovering from a two-year recession that was caused in part by contagion from an economic downturn in Russia, where many Belarussians work.
"Moderate economic growth will continue, but annual growth rates will not exceed 3 percent," World Bank economist Marina Sidorenko said in a briefing.
Earlier in April, a new wave of US sanctions on Russia caused a sharp fall in the value of the Russian rouble, which could undermine Belarussian growth prospects.
"Russian rouble volatility could lead to fluctuations of the Belarussian rouble," she said. "Depreciation of the Russian rouble could weaken price competitiveness of Belarussian companies on the Russian market," Sidorenko said.
Last week, the Belarussian currency weakened around 5 percent to a year-low against the dollar due to contagion from the rouble's slump in Russia.
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