Belarus:
Economy

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Other pages in this profile of Belarus:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition 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. Since 2005, the government has re-nationalized a number of private companies. In addition, businesses have been subject to pressure by 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. Because of these restrictive economic policies, Belarus has had trouble attracting foreign investment. Nevertheless, GDP growth has been strong in recent years, reaching nearly 7% in 2007, despite the roadblocks of a tough, centrally directed economy with a high, but decreasing, rate of inflation. Belarus receives heavily discounted oil and natural gas from Russia and much of Belarus' growth can be attributed to the re-export of Russian oil at market prices. Trade with Russia - by far its largest single trade partner - decreased in 2007, largely as a result of a change in the way the Value Added Tax (VAT) on trade was collected. Russia has introduced an export duty on oil shipped to Belarus, which will increase gradually through 2009, and a requirement that Belarusian duties on re-exported Russian oil be shared with Russia - 80% will go to Russia in 2008, and 85% in 2009. Russia also increased Belarusian natural gas prices from $47 per thousand cubic meters (tcm) to $100 per tcm in 2007, and plans to increase prices gradually to world levels by 2011. Russia's recent policy of bringing energy prices for Belarus to world market levels may result in a slowdown in economic growth in Belarus over the next few years. Some policy measures, including tightening of fiscal and monetary policies, improving energy efficiency, and diversifying exports, have been introduced, but external borrowing has been the main mechanism used to manage the growing pressures on the economy.
GDP (purchasing power parity)	Definition - World rank and map $105.2 billion (2007 est.)
GDP (official exchange rate)	Definition $44.77 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 8.2% (2007 est.)
GDP - per capita	Definition - World rank and map $10,900 (2007 est.)
GDP - composition by sector	Definition agriculture: 8.7% industry: 40.6% services: 50.6% (2007 est.)
Labor force	Definition 4.3 million (31 December 2005)
Labor force - by occupation	Definition agriculture: 14% industry: 34.7% services: 51.3% (2003 est.)
Unemployment rate	Definition - World rank and map 1.6% officially registered unemployed; large number of underemployed workers (2005)
Population below poverty line	Definition 27.1% (2003 est.)
Household income or consumption by percentage share	Definition lowest 10%: 3.4% highest 10%: 23.5% (2002)
Distribution of family income - Gini index	Definition - World rank and map 29.7 (2002)
Inflation rate (consumer prices)	Definition - World rank and map 8.4% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 29.9% of GDP (2007 est.)
Budget	Definition revenues: $20.76 billion expenditures: $21.18 billion (2007 est.)
Agriculture - products	Definition grain, potatoes, vegetables, sugar beets, flax; beef, milk
Industries	Definition metal-cutting machine tools, tractors, trucks, earthmovers, motorcycles, televisions, synthetic fibers, fertilizer, textiles, radios, refrigerators
Industrial production growth rate	Definition - World rank and map 5% (2007 est.)
Electricity - production	Definition - World rank and map 29.08 billion kWh (2005)
Electricity - consumption	Definition - World rank and map 29.49 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 3,044.7 kWh (2005)
Electricity - exports	Definition 5.053 billion kWh (2005)
Electricity - imports	Definition 9.091 billion kWh (2005)
Oil - production	Definition - World rank and map 33,700 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 156,000 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 16.1 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 249,900 bbl/day (2004 est.)
Oil - imports	Definition - World rank and map 378,200 bbl/day (2004 est.)
Oil - proved reserves	Definition - World rank and map 198 million bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 165 million cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 19.47 billion cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 2,010 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 19.31 billion cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 2.716 billion cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$2.944 billion (2007 est.)
Exports	Definition - World rank and map $23.04 billion f.o.b. (2007 est.)
Exports - commodities	Definition machinery and equipment, mineral products, chemicals, metals, textiles, foodstuffs
Exports - partners	Definition Russia 36.5%, Netherlands 17.8%, UK 6.3%, Ukraine 6.1%, Poland 5%, Latvia 4.1% (2006)
Imports	Definition - World rank and map $27.57 billion f.o.b. (2007 est.)
Imports - commodities	Definition mineral products, machinery and equipment, chemicals, foodstuffs, metals
Imports - partners	Definition Russia 59.9%, Germany 7.6%, Ukraine 5.4% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $2.469 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $6.889 billion (31 December 2007)
Market value of publicly traded shares	Definition $NA
Economic aid - recipient	Definition $53.76 million (2005)
Currency (code)	Definition Belarusian ruble (BYB/BYR)
Exchange rates	Definition Belarusian rubles per US dollar - 2,145 (2007), 2,144.6 (2006), 2,150 (2005), 2,160.26 (2004), 2,051.27 (2003)
Fiscal year	Definition calendar year

Belarus: Economy

Belarus:
Economy