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Moody's forecasts GDP growth of two percent in Belarus this year

Moody's Investors Service predicted earlier this month that Belarus' Gross Domestic Product will grow by two percent this year.

In a report focusing on the economic situation in the country, the credit ratings agency said that it expected inflation to be 20 and 16 percent, respectively, in 2013 and 2014. It forecast that GDP will grow by 2.5 percent next year.

Moody's analysts stressed that external economic assistance was key to Belarus' economic growth and warned of an increase in the country's foreign debt and a balance of payments deficit.

The agency warned that Belarus' gold and foreign exchange reserves remained at a relatively low level, making the country vulnerable to external shocks.

The Eurasian Economic Community's Anti-crisis Fund will disburse the final portion of its $3-billion billion for Belarus later this year, and no deal on a new loan has been struck so far, said the report. //BelaPAN