Despite the united efforts of the government and the National Bank, the economy is growing very slowly. Belarus remains an economic wonderland. But if several years ago the growth rates were miraculous, today the miracle is the absence of growth under the expansionary monetary policy and stimulation of investment. Is Belarus in a development recession? GDP Growth
Despite the united efforts of the government and the National Bank, the economy is growing very slowly. Belarus remains an economic wonderland.
But if several years ago the growth rates were miraculous, today the miracle is the absence of growth under the expansionary monetary policy and stimulation of investment. Is Belarus in a development recession?
16 May 2013
On 23 April 2013 Belarus witnessed a terrible death. 25-year old Yulia Kubareva passed away after undergoing an unfortunate nose reconstruction surgery at Ecomedservice — one of the largest private medical centres in Belarus.
By now, almost every Belarusian knows about the accident, and the government has launched mass inspections of private medical services...
06 May 2013
On 25 April 2013 Tatsiana Matoryna, Director of the Brest Stocking Plant — one of the largest apparel industry companies in the former Soviet Union— blamed sharp decreases in the plant’s sales on Belarus’ economic integration with Russia and Kazakhstan.
The accusation has serious grounds: in 2013, the volume of sales from the plant decreased by about 30% compared...
30 April 2013
This April economic growth in Belarus was nearly at the level of last year's, which still remains significantly below the official forecast.
The financial sector showed certain stability but the situation with attracting foreign capital and the nation's privatisation prospects remain uncertain.
The growth of consumer and commercial deposits in Belarusian rubles...
26 April 2013
Despite European protests against human rights violations, the European Union continues to render technical assistance to Belarus. In 2012-2013, Belarus can get more than € 55m in the framework of the European Neighbourhood and Partnership Instrument and the Eastern Partnership.
For Belarus, the EU is the largest potential development cooperation donor. Overall, since 1991 the...
24 April 2013
On 17 April 2013 Standard and Poor's upgraded its outlook on Belarus sovereign rating from stable to positive. According to the agency, strengthening economic stability was brought on by tightened monetary and fiscal policies.
The beneficial change means more than a pleasant evaluation of the country’s performance, but also a signal to foreign investors...
16 April 2013
On 12 April Alexander Lukashenka made his final decision on the public administration reform that he declared last year. He signed Decree No. 168 that aims to optimise the state apparatus and reduce the number of civil servants.
The reform did not any further than sacking 25% of government officials. The reductions should allow the government to raise the salaries for the...
08 April 2013
Amidst the snowy spring of 2013, the National Bank of Belarus finally gave up on its attempts to maintain macroeconomic stability and turned its attention to the real sector.
The National Bank began carrying out a policy of providing cheap credit to carry out modernization, the new holy cow of the government. It also set its sights on meeting the forecasted 8.5% of GDP growth...
22 March 2013
While economic growth seems to be recuperating in January and February, it remains below the wishful forecasts of the government.
At the same time, the situation with current account balance continues to be the pressing matter, as the government is looking for the money both to repay the debts and to finance its modernization projects.
The economic policy is once again trying to...
21 March 2013
Belarus is awaiting reforms to the public administration system, ordered by Alexander Lukashenka last year. It looks like the president’s main motive is to save money. Considerations of efficiency come second. However, the existing system of public administration cannot boast of particularly outstanding achievements.
Several indicators point to the necessity of a serious overhaul...
06 March 2013
On weekends, Vilnius looks like a Belarusian city.
Cars with Belarusian registration plates, crowds of Belarusians carrying shopping bags, even bus schedules to Belarus from big shopping centres. In 2012, according to the Lithuanian State Department of Tourism, 400,000 Belarusian guests visited Lithuania.
In politics, Lithuania maintains a critical position against Lukashenka...
18 February 2013
Last year net foreign direct investments into the real sector of Belarusian economy dropped by 75 per cent compared to 2011, according to recently release figures of the Belarusian Statistics Committee.
The pretext for sentimental patriots to moan is another reason for state authorities to rack their brains. They have eased tax burden, extended territories with privileged regimes,...
13 February 2013
The Belarusian government has announced its plans to modernise the national economy. However, the content of the policy package is far from clear. Given the experience accumulated by Belarus and other transition economies, there are reasons to warn about possible traps that modernization policy could set, if implemented unwisely.
The government has announced a new course for...