Belarusian Economy

Belarus is a country located in Eastern Europe with a high human development index and a diversified industrial profile. After the breakup of the USSR, Belarus preserved a relatively well-developed industrial base. Pursuing the strategy of cautious reform with great concern for social welfare and stability, the Belarusian Government was implementing smooth transition from the command to market economy.

Since the late 1990s, Belarus has attained progress in economic reform and stabilization. Until 2008, Belarus showed a strong growth with its GDP increasing by 8.3 percent annually. Growth slowed down substantially in the context of the global economic crisis, and the country has gone through a period of recurring macroeconomic instability. In 2013, initial macroeconomic stability had been restored, though remains fragile as Belarus faces significant external refinancing needs. The Belarusian Government takes certain steps to decrease the country’s reliance on the energy- and resource-intensive exports and to expand the SME sector.

Belarus has been a UN member since 1945. The country is also a part of the Commonwealth of Independent States (CIS) that was formed after the breakup of the Soviet Union.

Belarus is a member of the Eurasian Economic Union that today includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. The community was created to guarantee freedom of movement among the member countries. In 2010, Belarus joined the Common Economic Space and signed the Customs Union agreement with Kazakhstan and Russia.

The priority sectors of the Belarusian economy include machinery and metal working, oil refining, chemical and petrochemical industry, electric power, consumer goods and food processing, timber and woodworking industry. The role of services is becoming increasingly larger. Trade, services, and the industrial sector are the main sources of the country's economic development. In 2015, the production sector amounted to 41.4 percent of GDP and services to 47.7 percent of GDP.

Belarus' share of exports in GDP is 73.3 percent, more than a half of exported goods being industrial products. Our major exports are machinery, transport vehicles, chemicals, petrochemical products, rubber, fibers, mineral products, primary metals, fertilizers, food, agricultural raw materials, and IT and transport services. Raw materials remain the main import, most coming from the Russian Federation. In addition, Belarus' imports include machinery, equipment, mineral products, metal products, and foodstuffs.

For several decades, Belarus is one of the world’s largest manufacturers. The country’s share in the world production of the following products comprises: 17% of combine harvesters, 6% of tractors, 6.4% of flax fiber, 1.6% of potatoes, and up to 30% of mine dump trucks. Producing 1.4% of world milk volume, Belarus holds about 5% in world exports of dairy products and about 11% of butter.

Belarus trades with more than 190 countries, its major trade partners being Russia (over 48% of foreign trade volume), Ukraine, China, Great Britain, Germany, Poland, the Netherlands, Lithuania, Italy, and Latvia. The Government takes measures to improve the competitiveness of Belarusian goods and achieve their expansion to the Western market.

Belarusian enterprises that form the core of the Belarusian industry include mechanical engineering giants, top-notch chemical enterprises, innovative IT companies, and manufacturers of clothing, footwear, and foodstuffs. Among Belarus' most powerful plants are the Minsk Automobile Plant (MAZ), the Minsk Tractor Plant (MTZ), Belarusian Steel Works (BMZ), Atlant (freezer and refrigerator plant), Belaruskali (the second largest producer of potassium fertilizers in the world), Belcommunmash (electric transport manufacturer), and oil refineries in Novopolotsk and Mozyr.

Belarusian agriculture specializes in animal farming (milk and meat products), flax, potato, grain and vegetable crops, sugar beets, rapes and fodder crops. Since independence, emphasis has been laid on grain production allowing Belarus to attain self–sufficiency and reduce reliance on expensive grain imports. Most of the land is still publicly or collectively owned. Although subsidized by the Government, the agricultural sector still needs substantial capital investment and working capital financing.

The IT sector is increasingly becoming an essential element in Belarus’ economy. Over the past ten years, the exports of IT services have increased more than 50 times. In 2015, it reached USD $818 million, marking an 18,5% increase from 2014.