Republic of Belarus : Staff Report for the 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Belarus

The economy is contracting, hurt by external shocks and domestic structural weaknesses and rigidities. The authorities have taken some positive steps, including policies supporting macroeconomic stabilization and structural and institutional reforms such as a shift to a more flexible exchange rate. However, external sector weaknesses and negative macrofinancial feedback loops centered around the deteriorating performance of state owned enterprises (SOEs) are pushing up public and external debt, weakening the financial sector, and threatening stability.