Belarus' gross external debt down by $2.2bn in 2022

Belarus improved its external debt service indicators in 2022: the ratio of external debt repayment to GDP decreased to 6.9 percent from 10.4 percent a year earlier, falling to 10.9 percent from 14.6 percent (in 2021) with regard to exports of goods and services, the Eurasian Development Bank reports in its macro review

In general, Belarus’ gross external debt decreased by $2.2bn in 2022 to $39.7bn, which makes 54.3 percent of GDP. This was due to the reduction of external liabilities of enterprises and the banking sector by $1.8bn and $0.7bn – to $14.8bn and $6.4bn, respectively.

The EDB review notes that the persistence of price regulation and weak domestic demand continue to slow down inflation in Belarus. A further decrease in the rate of price growth is expected – to 4 percent year-on-year in Q2 2023.

However, the disinflationary effect of price regulation will end, and prices will go up again — to the level of 8 percent, the Eurasian Development Bank experts believe.