Economy Overview
Belarus's economy in 2005 posted 8% growth. The government has succeeded in lowering inflation over the past several years. Trade with Russia - by far its largest single trade partner - decreased in 2005, largely as a result of a change in the way the Value Added Tax (VAT) on trade was collected. Trade with European countries increased. 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. During 2005, the government 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, which remains low. Growth has been strong in recent years, despite the roadblocks in a tough, centrally directed economy with a high, but decreasing, rate of inflation. Belarus continues to receive heavily discounted oil and natural gas from Russia. Much of Belarus' growth can be attributed to the re-export of Russian oil at market prices.
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
15.6% (2005 est.)
Labor Force
4.3 million (31 December 2005)
Electricity production
30 billion kWh (2004)
Electricity Consumption
34.3 billion kWh (2004)
Electricity Exports
800 million kWh (2004)
Electricity Imports
7 billion kWh (2003)
Unemployment Rate
1.6% officially registered unemployed; large number of underemployed workers (2005)
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
30.4 (2000)
Budget
Revenues: $5.903 billion
Expenditures: $6.343 billion; including capital expenditures of $180 million (2005 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$1.215 billion (2005 est.)
Debt External
$4.662 billion (30 June 2005 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Belarusian rubles per US dollar - 2,150 (2005), 2,160.26 (2004), 2,051.27 (2003), 1,790.92 (2002), 1,390 (2001)
