Updated at 17:11,20-07-2018

Economist: Inflation will be 100-200 percent, and this is not a record


The economist believes, that current economic policy can lead to a situation of the 1990s, when inflation reached 2000% per year.

Rise of inflation is caused by increase of salaries, which, in its turn, don't compensate rising prices. "They are aimed to recover people from a shock. This strategy will continue", says the economist.

"We've faced it in 1990s, when inflation reached 2000% per year. This year it will be 100-200%. That is, it's still not a record, there are some prospects", Mikhail Zalesski jokes sadly.

He stresses, that National Bank have managed to stabilize the situation only a few years ago. The sharp increase of salaries before the presidential elections has canceled these efforts: "Again it will take years to get back to a normal state".

"At the same time it's necessary to limit salaries and prices. But it's difficult to sustain, because we don't have the single economic policy", explains the expert.

However, he notes that the line of poverty in Belarus is understated by half. Economists estimates, the minimum amount when a Belarusian citizen can live, is $4 (about Br34 thousand) per day, or Br 1 million a month.