Economic trends
Even today, Belarus' economy remains an economy in transition, an heir to the former Soviet block. After its independence in 1991, Belarus slowly adopted market-economy reforms, and in particular numerous privatizations. Nevertheless, the country has always maintained close relations with Russia. The government has, since 2005, re-nationalized a number of private companies and there is more and more government pressure in the business arena: arbitrary changes in regulations, numerous inspections, arrests of businessmen and factory owners.
GDP growth has been strong in recent years, reaching a rate of 7% in 2007. Belarus gets Russian gas and oil at a reduced price and its growth comes largely from the re-exportation of Russian oil at market price. Trade with Russia, by far its most important partner, diminished in 2007. Russia has introduced a customs duty on petroleum products exported to Belarus. Russia also increased the price of gas from USE 47 per cubic meter to USD 100 in 2007 and it is expecting to sell it at market price by 2011. This recent Russian policy of raising Belarus' energy prices to world market levels are expected to slow down Belarus' economic growth over the next few years.
Some political decision, namely the establishment tax mesures to improve energy efficiency and diversifying exports, have been implemented. Nonetheless, borrowing has been the primary mechanism used by the government in recent years to limit the growing pressure on the economy. Belarus has been affected by the global economic crisis and even though the country broke off all connections with the IMF in 2004, it sought a loan at the end of 2008. Thus Belarus obtained aid worth 2.5 billion dollars, in order to cope with the effects of the crisis.
Main branches of industry
Agriculture contributes around 10% of the country’s GDP.
Belarus' main industries are machine tools, agricultural equipment, fertilizers, chemical products, prefabricated construction material, motor vehicles, motorcycles, textiles, threads, and some consumer products (such as refrigerators, watches, televisions, and radios).
The tertiary sector contributes around 50% of the GDP.
International trade
Between January and June 2008, Belarus’ foreign trade in goods increased by almost 60%, compared to January-June in 2007, and reached more than USD 36 billion. The export of goods increased to nearly 62%, at USD 17.3 billion. However, this trend did not continue in 2009 due to the reduction of global demand. As for imports, they increased by 55% to nearly USD 20 billion.
Belarus' trade balance remains highly negative, mainly because of the increase in the price of oil sold by Russia. Russia remains Belarus' main trade partner.
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