$50 per barrel as guideline in Belarus state budget for 2016

Plans have been made to specify the oil price at $50 per barrel as part of Belarus’ central state budget for 2016, BelTA learned from Belarusian First Deputy Economy Minister Alexander Zaborovsky during expanded-participation session of the Budget and Finance Commission and the Economic Policy Commission of the House of Representatives of the National Assembly of Belarus on 18 November.

Alexander Zaborovsky reminded that the oil price of $57 per barrel was discussed in September 2015. The new figure matches the one expected by Russian colleagues.

The official explained: “The external conditions of operation of the Belarus economy in 2016 have been coordinated with our colleagues from the Russian Economic Development Ministry. By a special decision of the Supreme State Council a group involving our economists and economists of the Russian Federation Economic Development Ministry has been set up to coordinate macroeconomic scenarios.”

Alexander Zaborovsky also noted that the forecast for 2016 has been compiled in a complicated foreign economic environment. The high level of indetermination is the main problem. He also mentioned negative factors in the global situation. Those include the downfall of the raw materials market and turbulence on commodity markets. Forex wars have begun as well, with the currency of many countries being devalued, including Belarus’ partners in the Eurasian Economic Union.

China’s economic development has slowed down drastically. For the first time in a long period of time capital is leaving developed economies in favor of developing ones, added Alexander Zaborovsky. In his words, these factors cannot but affect Belarus via trade links and finances.

The Belarusian First Deputy Economy Minister noted that the forecast for 2016 has been compiled taking into account the need to honor external commitments and support macroeconomic stability. It is necessary to increase labor productivity because it is the key factor for raising the GDP.