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flag Belarus Belarus: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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 2009201020112012 (e)2013 (e)
GDP (billions USD) 49.2154.7157.72e65.1472.11
GDP (Constant Prices, Annual % Change) 0.27.6e5.01.23.8
GDP per Capita (USD) 5,1805,7716,1186,9407,721
General Government Gross Debt (in % of GDP) 21.726.546.345.650.3
Inflation Rate (%) 13.07.7e41.035.514.9
Unemployment Rate (% of the Labor Force) 0.90.70.70.70.7
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

Main Sectors of Industry

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.

 

Find more information about your business sector on our service Market reports.

 
Monetary Indicators 20062007200820092010
Belarussian Rubble (BYR) - Average Annual Exchange Rate For 1 USD 2,144.562,146.082,136.402,793.052,978.51

Source: World Bank - Last Available Data.

 

Find out all the exchange rates daily on our service Currency converter.

 
Learn more about Market Analysis about Belarus on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
47.9/100
Position:
Controlled
World Rank:
149/179
Regional Rank:
41/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

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 20062007200820092010
Imports of Goods (million USD) 22,35128,69339,38128,56934,868
Exports of Goods (million USD) 19,73424,27532,57121,30425,226
Imports of Services (million USD) 1,6432,0112,5502,0312,825
Exports of Services (million USD) 2,3853,2444,1513,4534,460
Imports of Goods and Services (Annual % Change) 21.67.316.5-8.63.4
Exports of Goods and Services (Annual % Change) 8.25.62.1-8.26.0
Imports of Goods and Services (in % of GDP) 64.267.268.761.865.3
Exports of Goods and Services (in % of GDP) 60.160.960.950.554.4
Trade Balance (million USD) 2,269-4,042-6,2376,957-9,118
Trade Balance (Including Service) (million USD) -1,532-2,812-4,613-5,518-7,426
Foreign Trade (in % of GDP) 124.3128.2129.6112.3119.8

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

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

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 26.8%
Mineral or chemical potassic fertilizers (excl....Mineral or chemical potassic fertilizers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg) 8.8%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 3.2%
Tractors (other than tractors of heading 8709)Tractors (other than tractors of heading 8709) 3.1%
Cheese and curdCheese and curd 2.1%
See More Products 56.0%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 19.4%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 12.0%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.6%
Ferrous waste and scrap; remelting scrap ingots of...Ferrous waste and scrap; remelting scrap ingots of iron or steel (excl. slag, scale and other waste from the production of iron or steel; radioactive waste and scrap; fragments of pigs, blocks or other primary forms of pig iron or spiegeleisen) 1.4%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 1.2%
See More Products 63.5%

Source: Comtrade, Last Available Data

 
 

To go further, check out our service Import export flows.

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Sources of General Economic Information

Ministries
Ministry of Finance (in Belarusian only)
Ministry of Economy and Energy
Statistical Office
The Ministry of Statistics and Analysis of the Republic of Belarus
Central Bank
National Bank of the Republic of Belarus
Stock Exchange
Belarusian Stock Exchange
Search Engines
Akavita
Zubr
Belarusian.com
Economic Portals
Portal of the Republic of Belarus

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Political Outline

Executive Power
President is the chief of the state and is elected by popular vote for a five-year term. The President holds the executive powers. P rime Minister, deputy prime ministers and the Council of Ministers are appointed by the President.
Legislative Power
The legislature in Belarus is bicameral. The parliament also called National Assembly consists of two chambers: Council of the Republic (the upper house) consisting of 64 seats out of which 56 members are elected by regional councils and 8 members appointed by the president, all for four-year terms; and the Chamber of Representatives (the lower house) consisting of 110 seats with all its members elected by universal adult suffrage to serve four-year terms. The people of Belarus have very limited political rights.
Main Political Parties
The main political parties are: AP (Agrarian Party), KPB (Belarusian Communist Party), Liberal Democratic Party of Belarus, Republican Party of Labour and Justice, Socialist Sports Party. Parties that support the President have a chance at elections. Opposition parties are allowed to contest elections, but are widely considered to have no real chance of gaining power.
Current Political Leaders
President: Aleksandr LUKASHENKO (since July 1994, re-elected in September 2001, in March 2006 and in December 2010) – supported by a group of 5 parties & a large number of independent members of the National Assembly.
Prime Minister: Sergei SIDORSKIY (since December 2003) – appointed by the President.
Next Election Dates
Presidential: 2015
National Assembly: 2012
 

Indicator of Freedom of the Press

World Rank:
168/179
Evolution:
14 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
7/7
Civil Liberties:
6/7

Map of freedom 2010
Source: Freedom House

 

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