Belarus economy in recession, likely to continue contraction in 2016: World Bank

Weak external and domestic demand put the Belarusian economy in recession, which is likely to continue in 2016, the World Bank said on Monday.

The economy is projected to contract by 3.5 percent in 2015 in Belarus, World Bank senior economist Ruslan Piontkivsky said while presenting the bank's Economic Update for Belarus.

In 2016, the fall will continue but at a softer pace -- 0.5 percent, and in 2017 the GDP growth will resume but it will be insignificant, at the level of 1 percent, Piontkivsky said.

According to the World Bank's update, the Belarussian economy is in recession with real output contracting for the first time since 1995 due to weak external and domestic demand.

In January-September 2015, the country's gross domestic product fell by 3.7 percent year on year, compared to a modest increase of 1.6 percent in 2014, the update showed.

According to the economist, the predictions for 2016 and 2017 are uncertain as much depends on the dynamics of oil prices and the economic situation in Russia and Ukraine, which are the main trading partners for Belarus.

Appropriately sequenced reforms can address long-standing structural inefficiencies and spur growth over the long run, the update suggested.

Since Belarus joined the World Bank in 1992, lending commitments to the country have totaled 1.48 billion U.S. dollars, the World Bank said. Endit