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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

Fourth largest economy of the CIS, Belarus is both largely publically administered (over 70% of GDP is generated by public or quasi public enterprises) and very open commercially.

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. Trade with Russian, by far its largest trading partner, fluctuates according to the tensions between these two countries.

Despite the financial crisis the country is experiencing, the Belarusian GDP has been growing steadily in recent years, reaching 6% ​​in 2010 and 5% in 2011. However, the effects of the global crisis have been deeply felt, especially in the industrial sector.

In great difficulties economically and financially since the beginning of 2011, the authorities have had to agree to a significant devaluation of the currency, the Belarusian ruble losing over 50% of its value within only a few months. Minsk was been granted a loan of $3.5 billion from the anti-crisis fund of the Eurasian Economic Community to support the economy: inflation reached 36%. Seeking external funding, Belarus also called on the IMF and requested the establishment of a new "Stand By" program for an amount of up to $ 8 billion. However, according to the latest IMF mission in Belarus, the lack of progress in implementing the necessary reforms and recommendations - such as price liberalization, privatization, floating the currency and wage freezes - will not allow to resolve the situation in the near future. In a statement made ​​in June 2011, the World Bank described the economic model of Belarus as "out of breath."

 
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 9.3% of the country’s GDP and employs 14% of the active population. The country is the third largest producer of milk in Europe.

The industry sector accounts for 39.7% of the GDP and employs over 30% of workforce.  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 51% to the GDP and employs half of the Belarusian workforce.

 
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 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.

 

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Learn more about Market Analyses about Belarus on Globaltrade.net, the Directory for International Trade Service Providers.
 

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

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

As a legacy of the Soviet period, during which Belarus was the assembly line of the USSR, production structures between Russia and Belarus are still largely complementary. As a result, the Belarusian economy remains heavily oriented towards the Russian market, which is both its natural out and the main supplier (over 50% of total trade).

The country's main import partners are Russia, Germany, France, Ukraine and China. Belarus is an important transit country for oil from Russia, which has guaranteed supplies of oil and gas at below-market rates for many years.

Its main customers are Russia, the Netherlands and Ukraine.

The country's sustained economic growth has nonetheless been accompanied by significant external imbalances, especially of its trade deficit, which has deteriorated significantly (about $7 billion). Since spring 2011, the country has been experiencing a severe currency crisis. The devaluation of the Belarusian ruble in May has not been a sufficient short-term solution and has had a great impact on the country's foreign trade.

The trade balance remains largely negative, particularly because of the rising prices of oil sold to Belarus by Russia. Russia remains the largest trading partner of Belarus.

 
Foreign Trade Indicators 20072008200920102011
Imports of Goods (million USD) 28,69339,38128,56934,86845,747
Exports of Goods (million USD) 24,27532,57121,30425,22640,409
Imports of Services (million USD) 2,0112,5502,0312,8783,136
Exports of Services (million USD) 3,2444,1513,4534,4705,205
Imports of Goods and Services (Annual % Change) 7.316.5-8.63.4-
Exports of Goods and Services (Annual % Change) 5.62.1-8.26.0-
Imports of Goods and Services (in % of GDP) 67.268.761.865.3-
Exports of Goods and Services (in % of GDP) 60.960.950.554.4-
Trade Balance (million USD) -4,042-6,2376,957-9,118-
Trade Balance (Including Service) (million USD) -2,816-4,614---
Foreign Trade (in % of GDP) 128.2129.6112.3119.8-

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

 
 

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Sources of General Economic Information

Ministries
Ministry of Finance (in Belarusian only)
Ministry of 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

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

 

Indicator of Political Freedom

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

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

 

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