Europe > Belarus > Economy

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Agriculture > products grain, potatoes, vegetables, sugar beets, flax; beef, milk
Aid as % of GDP	0.1%		[127th of 129]
Debt > External	$9,272,000,000.00		[79th of 136]
Distribution of family income > Gini index	29.7		[19th of 43]
Economic freedom	0.7		[153rd of 156]
Economy > Overview 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.
Exports	$24,470,000,000.00		[61st of 189]
GDP	$36,945,290,000.00		[63rd of 203]
GDP > PPP	$67,902,000,000.00		[62nd of 163]
GDP > Real growth rate	8.2%		[29th of 198]
GDP growth > annual %	9.24 annual %		[13th of 187]
GINI index	29.72		[20th of 40]
Gross National Income	$12,860,600,000.00		[72nd of 172]
Human Development Index	0.786		[67th of 178]
Income category	Lower middle income
Income distribution > Poorest 10%	5.1%		[1st of 114]
Income distribution > Richest 10%	20%		[114th of 114]
Population below poverty line	27.1%		[28th of 46]
Poverty > Share of all poor people	0.02 % of world's poor		[66th of 80]
Tourist arrivals	254,000		[93rd of 152]

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