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Belarus: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Even today, Belarus' economy remains an economy in transition, inherited from the former Soviet block. After its independence in 1991, Belarus slowly adopted market-economy reforms, and in particular numerous privatizations. The country has always maintained close relations with Russia. Since 2005 and the accession of Loukachenko to the power, the country, which had adopted a "market socialism", has re-nationalized many private companies and the pressure from the part of the government has become stronger in the business field: arbitrary changes in regulations, numerous inspections, arrest of businessmen and factory owners.
Belarus obtains gas and oil from Russia at a reduced price and its growth comes largely from the re-exportation of Russian oil at market price which has created a source of tension with Russia. Its trade with Russia, by far its most important partner, diminished in 2007. Russia has introduced a customs duty on petroleum products exported into Belarus. Russia also increased the price of gas from USD 47 per cubic meter to USD 100 in 2007 and it is expecting to sell it at market price by 2011. This recent Russian policy of raising Belarus' energy prices to world market levels should create, as a consequence, a slowdown in Belarus' economic growth over the next few years.
Some political decisions, notably the establishment of fiscal measures to improve energy efficiency and to diversify exports, have been implemented. Nonetheless, borrowing has been the primary mechanism used by the government in recent years to limit the growing pressure on the economy. Belarus has been affected by the global economic crisis and even though the country had broken up all connections with the IMF in 2004, it requested a loan at the end of 2008. Thus Belarus obtained this way USD 2.5 billion in financial aid to cope with the effects of the crisis.
Officially, Belarus has experienced a large growth these recent years, attaining a rate of 6% in 2010. But the effects of the global crisis have been severely felt , most of all in the industrial sector. The aid accorded by the IMF provoked a devaluation of the Belarusian ruble by 40% without positive results on the GDP. The GDP reached 10% in 2008, but its growth contracted to 0.2% in 2009.
It is important to note that the Belarus' official figures are subject to question, such as the unemployment rate which was announced at only 1%.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 49.21 | 54.71 | 57.72e | 65.14 | 72.11 |
| GDP (Constant Prices, Annual % Change) | 0.2 | 7.6e | 5.0 | 1.2 | 3.8 |
| GDP per Capita (USD) | 5,180 | 5,771 | 6,118 | 6,940 | 7,721 |
| General Government Gross Debt (in % of GDP) | 21.7 | 26.5 | 46.3 | 45.6 | 50.3 |
| Inflation Rate (%) | 13.0 | 7.7e | 41.0 | 35.5 | 14.9 |
| Unemployment Rate (% of the Labor Force) | 0.9 | 0.7 | 0.7 | 0.7 | 0.7 |
| Current Account (billions USD) | -6.39 | -8.49 | -7.76e | -6.43 | -6.76 |
| Current Account (in % of GDP) | -13.0 | -15.5e | -13.4e | -9.4 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
Agriculture contributes to around 9.2% of the country’s GDP and employs 14% of the active population.
The industry sector accounts for 41.8% of the GDP and employs 34.7% of workers. The main industries of Belarus are machine tools, agricultural equipment, fertilizers, chemical products, prefabricated construction material, motor vehicles, motorcycles, textiles and some consumer products (such as refrigerators, watches, televisions, and radios).
The tertiary sector contributes around 50% to the GDP and employs 51.3% of Belarusian workers.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Value Added (in % of GDP) | 8.7 | 38.7 | 52.5 |
| Value Added (Annual % Change) | 0.0 | 0.0 | 32.2 |
Source: World Bank - Last Available Data.
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| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Belarussian Rubble (BYR) - Average Annual Exchange Rate For 1 USD | 2,144.56 | 2,146.08 | 2,136.40 | 2,793.05 | 2,978.51 |
Source: World Bank - Last Available Data.
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Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
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Between January and June 2008, Belarus’ foreign trade in goods increased by almost 60%, compared to January-June in 2007, and reached more than USD 36 billion.
The export of goods increased to nearly 62%, attaining USD 17.3 billion. However, this trend did not continue in 2009 due to the reduction of global demand. Belarus main clients are Russia (33%), the Netherlands (13%) and Ukraine (8%).
As for imports, they increased by 55%, attaining nearly USD 20 billion. Its main trade import partners are Russia (56%), Germany (8%), Ukraine and China (4%).
Belarus' trade balance remains highly negative, mainly due to the increase in the price of oil sold by Russia. As a fact, Russia remains Belarus' main trade partner.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 22,351 | 28,693 | 39,381 | 28,569 | 34,868 |
| Exports of Goods (million USD) | 19,734 | 24,275 | 32,571 | 21,304 | 25,226 |
| Imports of Services (million USD) | 1,643 | 2,011 | 2,550 | 2,031 | 2,825 |
| Exports of Services (million USD) | 2,385 | 3,244 | 4,151 | 3,453 | 4,460 |
| Imports of Goods and Services (Annual % Change) | 21.6 | 7.3 | 16.5 | -8.6 | 3.4 |
| Exports of Goods and Services (Annual % Change) | 8.2 | 5.6 | 2.1 | -8.2 | 6.0 |
| Imports of Goods and Services (in % of GDP) | 64.2 | 67.2 | 68.7 | 61.8 | 65.3 |
| Exports of Goods and Services (in % of GDP) | 60.1 | 60.9 | 60.9 | 50.5 | 54.4 |
| Trade Balance (million USD) | 2,269 | -4,042 | -6,237 | 6,957 | -9,118 |
| Trade Balance (Including Service) (million USD) | -1,532 | -2,812 | -4,613 | -5,518 | -7,426 |
| Foreign Trade (in % of GDP) | 124.3 | 128.2 | 129.6 | 112.3 | 119.8 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| Russia | 38.5% |
| Netherlands | 11.0% |
| Ukraine | 10.1% |
| United Kingdom | 3.9% |
| Latvia | 3.7% |
| See More Countries | 32.8% |
| Main Suppliers (% of Imports) |
2010 |
| Russia | 51.3% |
| Germany | 6.8% |
| Ukraine | 5.4% |
| China | 4.7% |
| Venezuela | 3.3% |
| See More Countries | 28.5% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
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Source: Worldwide Press Freedom Index 2011, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: February 2012