Belarus Economy - 2005

Economy - overview:
Belarus's economy in 2003-04 posted 6.1% and 6.4% growth. Still, the economy continues to be hampered by high inflation, persistent trade deficits, and ongoing rocky relations with Russia, Belarus' largest trading partner and energy supplier. Belarus has seen little structural reform since 1995, when President LUKASHENKO launched the country on the path of "market socialism." In keeping with this policy, LUKASHENKO reimposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene in the management of private enterprises. In addition, businesses have been subject to pressure on the part of central and local governments, e.g., arbitrary changes in regulations, numerous rigorous inspections, retroactive application of new business regulations, and arrests of "disruptive" businessmen and factory owners. A wide range of redistributive policies has helped those at the bottom of the ladder; the Gini coefficient is among the lowest in the world. For the time being, Belarus remains self-isolated from the West and its open-market economies. Growth has been strong in recent years, despite the roadblocks in a tough, centrally directed economy and the high, but decreasing, rate of inflation. Growth has been buoyed by increased Russian demand for generally noncompetitive Belarusian goods.

GDP:
purchasing power parity - $70.5 billion (2004 est.)

GDP - real growth rate:
6.4% (2004 est.)

GDP - per capita:
purchasing power parity - $6,800 (2004 est.)

GDP - composition by sector:
agriculture: 11%
industry: 36.4%
services: 52.6% (2004 est.)

Labor force:
4.305 million (31 December 2003)

Labor force - by occupation:
agriculture 14%, industry 34.7%, services 51.3% (2003 est.)

Unemployment rate:
2% officially registered unemployed; large number of underemployed workers (2004)

Population below poverty line:
27.1% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 5.1%
highest 10%: 20% (1998)

Distribution of family income - Gini index:
21.7 (1998)

Inflation rate (consumer prices):
17.4% (2004 est.)

Investment (gross fixed):
21.8% of GDP (2004 est.)

Budget:
revenues: $3.326 billion
expenditures: $3.564 billion, including capital expenditures of $180 million (2004 est.)

Agriculture - products:
grain, potatoes, vegetables, sugar beets, flax; beef, milk

Industries:
metal-cutting machine tools, tractors, trucks, earthmovers, motorcycles, televisions, chemical fibers, fertilizer, textiles, radios, refrigerators

Industrial production growth rate:
4% (2004 est.)

Electricity - production:
30 billion kWh (2004)

Electricity - consumption:
34.3 billion kWh (2004)

Electricity - exports:
800 million kWh (2004)

Electricity - imports:
3.2 billion kWh (2003)

Oil - production:
36,000 bbl/day (2004 est.)

Oil - consumption:
285,000 bbl/day (2003 est.)

Oil - exports:
14,500 bbl/day (2003 est.)

Oil - imports:
360,000 bbl/day (2004 est.)

Natural gas - production:
250 million cu m (2004 est.)

Natural gas - consumption:
18.8 billion cu m (2004 est.)

Natural gas - exports:
0 cu m (2004 est.)

Natural gas - imports:
18.5 billion cu m (2004 est.)

Current account balance:
$-1.119 billion (2004 est.)

Exports:
$11.47 billion f.o.b. (2004 est.)

Exports - commodities:
machinery and equipment, mineral products, chemicals, metals; textiles, foodstuffs

Exports - partners:
Russia 38.7%, Poland 6.5%, Latvia 5.1%, Germany 5.1%, Ukraine 5.1% (2004)

Imports:
$13.57 billion f.o.b. (2004 est.)

Imports - commodities:
mineral products, machinery and equipment, chemicals, foodstuffs, metals

Imports - partners:
Russia 50%, Germany 13.3%, Ukraine 4.3%, Poland 4.2% (2004)

Reserves of foreign exchange and gold:
$770.2 million (2004 est.)

Debt - external:
$600 million (2004 est.)

Economic aid - recipient:
$194.3 million (1995)

Currency (code):
Belarusian ruble (BYB/BYR)

Exchange rates:
Belarusian rubles per US dollar - 2,160.26 (2004), 2,051.27 (2003), 1,790.92 (2002), 1,390 (2001), 876.75 (2000)