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Belarus Economy 2018

SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES











Belarus Economy 2018
SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 28, 2018

Economy - overview:
As part of the former Soviet Union, Belarus had a relatively well-developed, though aging industrial base; it retained this industrial base - which is now outdated, energy inefficient, and dependent on subsidized Russian energy and preferential access to Russian markets - following the breakup of the USSR. The country also has a broad agricultural base which is largely inefficient and dependent on government subsidies. After an initial burst of capitalist reform between 1991 and 1994, including privatization of smaller state enterprises and some service sector businesses, creation of institutions of private property, and development of entrepreneurship, Belarus' economic development greatly slowed. About 80% of all industry remains in state hands, and non-Russian foreign investment has been hindered by a reluctance to welcome private investment absent joint ownership or affiliation with the state. A few businesses, which had been privatized after independence, were renationalized. State banks account for 75% of the banking sector.Economic output declined for several years following the collapse of the Soviet Union, but revived in the mid-2000s due to the boom in oil prices. Belarus has only small reserves of crude oil, though it imports most of its crude oil and natural gas from Russia at prices substantially below world market prices. Belarus then derives export revenue by refining Russian crude and selling it at market prices. In late 2006, Russia began a process of rolling back its subsidies on oil and gas exports to Belarus. Several times since, Russia and Belarus have had serious disagreements over the level and price of Russian energy supplies. At one point in 2010, Russia stopped the export of all subsidized oil to Belarus save for domestic needs before the two countries reached a deal to restart the export of discounted oil to Belarus. Beginning in early 2016, Russia claimed Belarus began accumulating debt – reaching $740 million by April 2017 – for paying below an agreed price for Russian natural gas. Russia decided to reduce its export of crude oil as a result of the debt. In April 2017, Belarus agreed to pay its gas debt and Russia restored the flow of crude. The agreement paved the way for resumption of cheap energy imports and financial assistance from the Eurasian Fund for Stabilization and Development.New non-Russian foreign investment has been limited in recent years. In 2011, a financial crisis began, triggered by government-directed salary hikes, compounded by an increased cost in Russian energy inputs and an overvalued Belarusian ruble that lead to a nearly three-fold devaluation of the Belarusian ruble. In November 2011, Belarus agreed to sell to Russia its remaining shares of Beltransgaz, the Belarusian natural gas pipeline operator, in exchange for reduced prices for Russian natural gas. The situation stabilized in 2012, after Belarus received part of a $3 billion loan from the Russian-dominated Eurasian Economic Community Bailout Fund, a $1 billion loan from the Russian state-owned bank Sberbank, and $2.5 billion from the sale of Beltransgaz to Russian state-owned Gazprom; nevertheless, the Belarusian currency lost more than 60% of its value, as inflation reached new highs in 2011 and 2012, before calming in 2013. In December 2013, Russia announced a new loan for Belarus of up to $2 billion for 2014. Notwithstanding foreign assistance, the Belarusian economy continued to struggle under the weight of high external debt servicing payments and trade deficit. In mid-December 2014, structural economic shortcomings were aggravated by the devaluation of the Russian ruble, which triggered a near 40% devaluation of the Belarusian ruble.Belarus’s economy stagnated between 2012 and 2016, which led to widening productivity and income gaps between Belarus and neighboring countries. Since 2015, the Belarusian government has tightened its macro-economic policies, allowed more flexibility to its exchange rate, taken steps towards price liberalization, and reduced subsidized government lending to state-owned industrial and agricultural enterprises, amid a drop in state budget revenues that resulted from falling global prices on key Belarusian export commodities - petroleum products and potash fertilizer. Belarus returned to weak growth in 2017, largely driven by improvement of external conditions that allowed for growth in its manufacturing sector. Belarus also issued sovereign debt for the first time since 2011 for $1.4 billion in June 2017, which provided the country with badly-needed liquidity.

GDP (purchasing power parity):
$175.9 billion (2017 est.) $174.6 billion (2016 est.) $179.4 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 72

GDP (official exchange rate):
$52.78 billion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
0.7% (2017 est.) -2.6% (2016 est.) -3.8% (2015 est.)
country comparison to the world: 192
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$18,600 (2017 est.) $18,400 (2016 est.) $18,900 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 95

Gross national saving:
19.4% of GDP (2017 est.) 21.7% of GDP (2016 est.) 25.8% of GDP (2015 est.)
country comparison to the world: 95
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 54.8%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 16.8%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 24.1%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: -1.1%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 65%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -59.6% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 8.3%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 40.6%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 51.1% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

Industries:
metal-cutting machine tools, tractors, trucks, earthmovers, motorcycles, synthetic fibers, fertilizer, textiles, refrigerators, washing machines and other household appliances

Industrial production growth rate:
3.5% (2017 est.)
country comparison to the world: 86
[see also: Industrial production growth rate country ranks ]

Labor force:
4.381 million (2016 est.)
country comparison to the world: 90
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 9.7%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 23.4%
[see also: Labor force - by occupation - industry country ranks ]
services: 66.8% (2015 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
1% (2017 est.) 1% (2016 est.)
note: official registered unemployed; large number of underemployed workers
country comparison to the world: 6
[see also: Unemployment rate country ranks ]

Population below poverty line:
5.7% (2016 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.8%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 21.9% (2008)

Distribution of family income - Gini index:
26.5 (2011) 21.7 (1998)
country comparison to the world: 140
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $22.8 billion
[see also: Budget - revenues country ranks ]
expenditures: $22.54 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
43.2% of GDP (2017 est.)
country comparison to the world: 28
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
0.5% of GDP (2017 est.)
country comparison to the world: 23
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
46.2% of GDP (2017 est.) 47.5% of GDP (2016 est.)
country comparison to the world: 113
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
8% (2017 est.) 11.8% (2016 est.)
country comparison to the world: 197
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
14% (19 April 2017) 15% (15 March 2017)
country comparison to the world: 11
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
14% (31 December 2017 est.) 14.4% (31 December 2016 est.)
country comparison to the world: 52
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$2.881 billion (31 December 2017 est.) $2.718 billion (31 December 2016 est.)
country comparison to the world: 121
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$6.03 billion (31 December 2017 est.) $5.431 billion (31 December 2016 est.)
country comparison to the world: 125
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$21.45 billion (31 December 2017 est.) $20.64 billion (31 December 2016 est.)
country comparison to the world: 89
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$2.801 billion (2017 est.) -$1.703 billion (2016 est.)
country comparison to the world: 164
[see also: Current account balance country ranks ]

Exports:
$24.2 billion (2017 est.) $22.98 billion (2016 est.)
country comparison to the world: 67
[see also: Exports country ranks ]

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

Exports - partners:
Russia 46.3%, Ukraine 12.2%, UK 4.6%, Germany 4% (2016)

Imports:
$26.2 billion (2017 est.) $25.57 billion (2016 est.)
country comparison to the world: 67
[see also: Imports country ranks ]

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

Imports - partners:
Russia 55.5%, China 7.8%, Germany 4.9%, Poland 4.4% (2016)

Reserves of foreign exchange and gold:
$5.059 billion (31 December 2017 est.) $4.927 billion (31 December 2016 est.)
country comparison to the world: 93
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$38.75 billion (31 December 2017 est.) $37.74 billion (31 December 2016 est.)
country comparison to the world: 75
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$6.929 billion (31 December 2016 est.) $7.241 billion (31 December 2015)
country comparison to the world: 99
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$3.547 billion (31 December 2016 est.) $4.649 billion (31 December 2015)
country comparison to the world: 77
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Belarusian rubles (BYB/BYR) per US dollar - 1.9 (2017 est.) 2 (2016 est.) 2 (2015 est.) 15,926 (2014 est.) 10,224.1 (2013 est.)


NOTE: 1) The information regarding Belarus on this page is re-published from the 2018 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Belarus Economy 2018 information contained here. All suggestions for corrections of any errors about Belarus Economy 2018 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) The assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order






This page was last modified 28-Feb-18
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