"Cars are subsequently given away, as there's no requirement for them"
Unraveling the Belarusian Madness
In the heart of Eastern Europe, Belarus is experiencing a peculiar economic surge that's raising eyebrows. With the broad money supply on the rise, particularly the volume of cash rubles, prices are swiftly climbing— May's annual increase reached a staggering 7.1%. This unsettling growth doesn't gel with the government's projections.
Yet, the country's new bank chief, Roman Golovchenko, claims it's all just a façade, alleging that the economic slowdown in partner nations and increased inflation in those countries are to blame. He insists that the situation in Belarus remains "acceptable", suggesting that inflation is under control.
Critics, however, aren't quite persuaded. Economist Sergei Chaly, for instance, questions this logic on the BRC channel. If inflation in partner countries accelerates, and demand for Belarusian goods wanes—what use is it to pump more money into an economy bereft of demand?
In these strange economic circumstances, Chaly remarks that ideas that once seemed absurd are now becoming the norm. If last year, Belarus was selling tractors for oranges to African countries, this year authorities are offering domestic products to potential partners "free of charge"—effectively for nothing.
The charm offensive extends beyond Africa. A government delegation recently visited Lebanon, gifting 100 tons of dry milk and 17 vehicles of humanitarian aid. Such grand gestures might paint a picture of strong diplomatic ties, but they do little to establish a solid trade foundation, notes Chaly.
It's not just Africa; the regime is exploring opportunities everywhere.. Since President Lukashenko suddenly realized the presence of Belarusians in Kaliningrad (who, strangely enough, left due to economic reasons), attempts to forge a deeper connection have failed to bear fruit.
As Chaly dryly remarks, these are the "achievements" of the Belarusian authorities in the Kaliningrad direction.
Lukashenko continues to boast about preserving elements from Soviet times. But if the once technologically advanced nation is now assembling Chinese models, and all that's technological isn't theirs—what exactly has been preserved? They're even considering installing a foreign battery. Is this just assembly work for the Belarusian economy? And then, they give these cars away because there's no real demand for them.
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In the context of Belarus' unpredictable economic surge, economist Sergei Chaly questions the logic of pumping more money into an economy with waning demand, as prices rise notably. This unusual strategy, Chaly suggests, is leading to ideas that were once considered absurd becoming the norm, such as distributing domestic products for free to try and stimulate trade. Additionally, the Belarusian government's diplomatic efforts extend beyond Africa, yet these grand gestures don't seem to be establishing a strong foundation for trade. As Chaly notes, these occurrences are signified as the "achievements" of Belarusian authorities in their attempts to forge deeper connections, particularly in regions like Kaliningrad.
These sentences engage with the topics of economics, business, politics, general-news, finance, and industry in the context of Belarus' peculiar economic surge.
