Barys Zhaliba: Stabilization in Belarus smells of cemetery

Neither people nor enterprises have money.

The Prime Minister Andrei Kabiakau assures "we live within our means". Economist Barys Zhaliba says that it seems like the head of the government is justifying himself.

At the meeting of the Council of the Ministers on May 19 Andrei Kabiakau summed up results of socio-economic development of Belarus for the first quarter of 2015.

- Amid all difficulties the country has financial and exchange rate stability, the inflation decelerated, Kabiakau said. - Flexible exchange rate is actual. It contributes to preservation of Gold and Forex Reserve. The measures taken, as well as currently ones allow to retain unemployment in socially acceptable limits, as well as to provide necessary guarantees and compensations to population. The main result: we live within our means.

- The main idea of his speech is that somehow they need to explain a current economic situation, Barys Zhaliba, Professor and Doctor of Economics, said to Salidarnasts.

The expert presents the Belstat's data which demonstrate the GDP decrease by 2.6%, industry – 7% for the first 4 months this year.

- If there is any financial stability, it is all because enterprises have no sources to give a rise. Russia's and Ukraine's markets - our main partners- have decreased, the expert explains. Our export decrease equals 30%.

It is true that the ruble exchange rate has fixed against dollar and euro. Neither people nor enterprises have money to deliver demand for dollar and euro. So, such stabilization is of cemetery nature.

But it is necessary in terms of fixed exchange rate and low inflation. It is when gross domestic product increases, when labour productivity and wage of persons grow in proportions. We do not have it. And it is only excusable speech if one says that we have retained intellectual potential. So many specialists and employees have left to the West and Russia! It seems like Kabiakau is justifying himself as prime minister, Barys Zhaliba summs up. - In Miasnikovich's times the economy stagnated, GDP barely increased. Not it is a period of recession. So, Kabiakau puts the best face on matters.