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Belarus growth to slow to 7 pct in H1 -minister

Published 12/09/2008, 08:57 AM
Updated 12/09/2008, 09:00 AM

MINSK, Dec 9 (Reuters) - Belarus's economic growth will slow to 7 percent in the first half of 2009 compared to 8.6 percent this year, as its exports decline due to the global slowdown and credit crisis, the economy minister said on Tuesday. Economy Minister Nikolai Zaichenko, speaking at a cabinet meeting, declined to give any new forecast for full-year growth next year, citing the unpredictable nature of the global crisis.

"Looking objectively at the end of this year and the situation at the beginning of next year, it is obvious we will have no fewer problems," state news agencies quoted Zaichenko as telling the meeting.

"Economic growth is slowing in the fourth quarter, reflecting lower industrial output and exports. This is the main negative effect of the global financial crisis."

The government's official growth forecast for next year issued in October was 10-12 percent, against predicted growth of 10.2 percent this year. Growth dipped in 2007 from the 9-10 percent of previous years after gas import prices from Russia were almost doubled.

Growth in January-November was 10.8 percent against 8.2 percent in the same period last year.

Officials had previously said that the economy, still largely in state hands, had managed to escape any direct effect from the worldwide financial crisis.

But Minsk is seeking a $2 billion loan from the International Monetary Fund as a precautionary measure and has already received $1 billion of a $2 billion loan from Russia. Its currency has weakened versus the dollar in recent months.

"Unfortunately, the crisis is not easing, but rather taking hold of all large countries. As Belarus is an exporting country, this crisis has an impact on the real economy," Prime Minister Sergei Sidorsky said.

Interfax Zapad news agency reported that the government expected a trade gap of $3.6 billion this year against $2.75 billion in 2007. It said inflation hit 12 percent in the first 11 months of this year compared to 9.4 percent a year ago. (Reporting by Andrei Makhovsky; writing by Sabina Zawadzki; editing by Stephen Nisbet)

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