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Belarus's economy shrinks by 2.5 pct in first half of 2016

Xinhua, July 20, 2016 Adjust font size:

The gross domestic product (GDP) of Belarus contracted 2.5 percent in the first half of 2016, new figures of the National Statistical Committee have showed.

The GDP declined by 3.6 percent in the first three months of 2016.

Fixed capital investment dropped 19.4 percent, retail trade shrank by 1.6 percent while wholesale trade by 2.7 percent, according to the figures.

Although government forecast GDP would grow at 0.3 percent for 2016, the European Bank for Reconstruction and Development predicted a 1.9-percent fall.

The World Bank said last year that the economy would continue to fall in 2016 but will return to growth in 2017.

The GDP of Belarus fell by 3.9 percent in 2015 after a 1.6-percent growth in 2014.

The World Bank attributes the fall to weak external and domestic demand. Endi