Belarus

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

After independence from the USSR in 1991, Belarus has slowly adopted market reforms and privatization but has always maintained its close economic relations with Russia. Nearly 80% of the industry still remains in the hands of the State, and foreign investment are difficult to attract because of hostile business environment. The banks, which were privatized after independence, were again renationalized. The economic still remains dependent on Russian subsidies. The GDP growth rate was 9.9% in 2006, 7.8% in 2007, with a forecast of 6.4% for 2007 by IMF. Among the former republics of the Soviet Union, Belarus has one of the highest standards of living because it inherited a relatively well-developed industrial base after independence. The major economic challenges faced by the county are: a high inflation (estimated at nearly 8% in 2007), a somewhat rigid economic model (Soviet style), and an increasing trade-deficit.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	23.14	30.13	36.94	38.72e	39.34e
GDP (constant prices, annual % change)	11.4	9.3	9.9	7.8e	6.4e
GDP per capita (USD)	2,361.34	3,088.82	3,808.31e	4,013.42e	4,101.55e
Inflation rate (%)	18.1	10.3	7.0	8.1e	10.0e
Unemployment rate (% of the labor force)	1.9	1.5	1.2	n.c.	n.c.
Current Account (billions USD)	-1.21	0.47	-1.52	-3.06e	-3.19e
Current Account (in % of GDP)	-5.2	1.6	-4.1	-7.9e	-8.1e

Source: IMF - World Economic Outlook Database; ILO, Laborstat - Yearly Statistics

Note: (e) Estimated data

Socio-demographic indicators	2004	2005	2006
Unemployment rate (%)	1.9	1.5	1.2

Source:

Main sectors of industry

Agriculture contributes nearly 9.5% to country’s GDP. Collective farms still occupy more than 80% of the cultivated land. The main crops are potatoes, sugar beets, and wheat. Forests cover about one-third of the land, and lumbering is an important occupation. Belarus has limited reserves of petroleum and natural gas and imports most of its oil and gas from Russia. Peat, the country's most valuable mineral resource, is used in fertilizer and chemical industry. Belarus also has deposits of clay, sand, chalk, dolomite, phosphorous and potassium. The industrial sector contributes nearly 40% to the GDP. The main industries are: heavy machinery (3rd largest producer of tractors in the world), chemical & fertilizer, construction material, and textiles. The services sector contributes nearly 50% to the GDP.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	2.0	10.4	11.8
Value added (in % of GDP)	9.3	43.4	47.3
Employment by sector (in % of total employment)	n.c.	n.c.	n.c.

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1,790.92	2,051.27	2,160.26	2,153.82	2,144.56

Source: World Bank - World Development Indicators

Foreign trade in figures

The share of foreign trade in country’s GDP is around 125%. Due to the structure of its industry, Belarusian relies heavily on Russia and other CIS countries both for export markets as well as supply of raw materials and energy. Two-thirds of Belarusian exports go to Russia. The top three export partners of Belarus are: Russia, the Netherlands, the United Kingdom. It mainly exports mineral fuels & oils, vehicles, fertilizers, machinery and iron & steel. The top three import partners are: Russia, Germany, and Ukraine. Commodities mainly imported are: mineral fuels & oils, machinery, iron & steel, vehicles, and electric & electronic equipment.

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	8,879	11,324	16,126	16,610	22,237
Exports of goods (millions USD)	7,965	10,076	13,942	16,109	19,838
Imports of services (millions USD)	908	915	1,058	1,250	1,487
Exports of services (millions USD)	1,341	1,500	1,747	1,959	2,299
Imports of goods and services (annual % change)	10.2	13.4	19.3	-1.3	12.6
Exports of goods and services (annual % change)	8.4	8.6	13.5	-1.3	7.5
Imports of goods and services (in % of GDP)	67.1	68.7	74.3	60.4	60.6
Exports of goods and services (in % of GDP)	63.8	64.9	67.8	61.1	60.4
Trade Balance (millions USD)	-914	-1,247	-2,184	-501	-2,398
Trade Balance (including service) (millions USD)	-482	-663	-1,495	209	-1,586
Current Account (millions USD)	-326	-434	-1,194	434	-1,512
Current Account (in % of GDP)	-2.2	-2.4	-5.2	1.5	-4.1
Foreign trade (in % of GDP)	130.8	133.6	142.1	121.5	121.0

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2006
Russia	34.7%
Netherlands	17.7%
United Kingdom	7.5%
Ukraine	6.3%
Poland	5.2%

Main suppliers (% of imports)	2006
Russia	58.6%
Germany	7.5%
Ukraine	5.5%
Poland	3.4%
China	2.5%

Source: 2006

Main products

Main exports (% of exports)	2006
Mineral fuels, mineral oils	38.3%
Vehicles other than railway or tramway	10.4%
Machinery and mechanical appliances	5.8%
Fertilizers	5.7%
Iron and steel	4.0%

Main imports (% of imports)	2006
Mineral fuels, mineral oils	32.8%
Machinery and mechanical appliances	11.1%
Iron and steel	6.4%
Vehicles other than railway or tramway	5.8%
Electrical machinery and equipment	5.0%

Source: 2006

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Ministries: Ministry of Finance (in Byelorussian)
Statistical Office: The Ministry of Statistics and Analysis of the Republic of Belarus
Central Bank: National Bank of the Republic of Belarus
Stock Exchange: Belorussian Currency and Stock Exchange
Online newspapers: Belarus Now
Search Engines: Akavita
Zubr
Belarusian.com

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 and March 2006) – 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: Year 2011
National Assembly: Year 2008