Belarus’ PM: growth of wages and production volumes is within absolutely acceptable frames
In Belarus, the growth of wages, production volumes and loans is within absolutely acceptable frames – as stated by Prime Minister Roman Golovchenko, answering journalists' questions about the artificial escalation of the situation by critics and the risk of overheating of the country's economy
Mr. Golovchenko believes it is not correct to compare the economic situation in Belarus and Russia – as the so-called experts do. The economic news presented by critics exclusively in a negative way is aimed at people who do not understand how economic models work. As noted by the PM, overheating is an economic category, and it describes a situation when GDP growth exceeds the potential one, and when wages are also actively growing, and money is directed to consumption.
“Such a model exists, it is understandable, and we do not refute it. All decisions made in the economic policy take into account, among other things, the risk of negative consequences. Professionals who know and understand this perfectly well work in the economic block of our Government and banking system. True, wages are growing in the country, we have an increase in production volumes and loans, but this growth is within absolutely acceptable frames,” Mr. Golovchenko said.
The relevant economic agencies are constantly monitoring the situation, and a matrix – that is based on all internationally approved approaches to assessing the so-called overheating of the economy, which includes 80 parameters – is used.
“All these parameters are within the green zone, we do not see any risk at the moment,” the PM added. “If someone shouts that we have some kind of excess money, that someone prints it, and so on, then it indicates a poor understanding of economic processes. Moreover, according to our calculations, the coefficient of monetisation of the economy is quite low. Differently speaking, there could be even more money in the economy, but so far we do not need additional credit support from the banking system. There are enough resources, and the main task now is to properly direct them to the areas that will produce the greatest return.”
