National Bank: China Is “To Be Blamed” For Trade Degradation

The authorities have found the one to blame for their failures.

The deterioration of the surplus of foreign trade in services in Belarus was mainly due to the fact that the Republic has resorted to the services of China on launching and testing its telecommunication satellite.

This is stated in the materials of the country’s National Bank.

In January 2016, the Belarusian telecommunication Belintersat-1 satellite was launched from the Chinese Xichang Space Center. It was designed and built by China Aerospace Science and Technology.

“In general, the negative balance of foreign trade in goods was not fully offset by the surplus in foreign trade in services. At that, the main factor in reducing the positive balance of trade in services in the current year was the services, provided by the People's Republic of China, on launching and testing the Belarusian telecommunication satellite,” – National Bank Monetary Policy and Economic Analysis Department Head Dzmitry Muryn said at the enlarged meeting of the National Bank Board.

His report is published in the July issue of the National Bank journal Bank Mercury.

Muryn said that the negative balance of foreign trade in goods and services is growing: energy trade balance deteriorates, the export of potash fertilizers decreases due to price and volume reduction. For other commodities remains positive downward trend of the deficit.

According to the National Bank, in the first half of 2016, the foreign trade turnover of goods and services amounted to 28.1 billion dollars and decreased compared to the same period last year by 13.6%. The foreign trade balance was negative and amounted of 148.7 million dollars against the surplus of 783.1 million dollars a year earlier. At the same time, the foreign trade deficit in goods amounted to more than $ 1.1 billion ,but there was the surplus of 990.5 million dollars in foreign trade in services, which is 16.1% less than in the first half of 2015.