29 July 2015
The first half of the year has shown clear evidence that the Belarusian economy needs better incentives to revive its industrial strengths.
In July the authorities announced their plans to provide financial assistance to several "giants" of industry. However, this decision has cast doubts over whether or not other taxpayers will ask the same from the state.
27 July 2015
Two weeks ago, Belarusian Deputy Foreign Minister Aliaksandr Hurjanau declared Belarus was planning to finish all of the necessary technical work for the country’s accession to the World Trade Organisation (WTO) in one year's time. However, exactly three years ago he also projected that Belarus would join the WTO by the end of 2013. Is this time going to be any different?
21 July 2015
This month, the Belarusian Ministry of Finance will issue bonds for $425.8 million to bail out Gomselmash (abbreviation for Homiel Rural Machine Building), the most important industrial holding company of the second largest city in the country. The large cost of issue reflects the size of Gomselmash’s problems.
The holding fails to sell its products, is reluctant to lay off people...
10 July 2015
On 9 July General Motors and JV Unison signed an agreement to assemble Chevrolet Tahoe and Cadillac Eskaleyd automobiles in the Minsk region.
From the beginning of the year, several international fast food chains have announced a desire to open shop in Belarus. New businesses include major American brands such as Burger King, KFC, and Texas Chicken.
But despite official claims...
09 July 2015
Last Thursday, Chinese workers in the Homel Province of Belarus broke out in a protest over wage arrears. The labour conflict went public and was yet another sign of growing Chinese activity in Belarus. The protest, unusual for Belarus, left an impression locally with one thousand Chinese working to construct a board factory in a Belarusian town with a population of only 20,000 people.
30 June 2015
A labour strike at a major state-owned plant in June suggests that the current economic crisis will present serious political challenges to Belarus. Despite it being an election year, wages and pensions are not growing – a rare occurrence. Yet, it stagnating incomes are not the country's primary problem.
Many state-owned enterprises do not have enough money to even pay...
27 May 2015
According to the press release published by International Monetary Fund on 19 May the possible losses for the Belarusian economy in 2015 will amount 2.3 per cent of the GDP and $2bn of its foreign exchange reserves.
The consequences of the economic crisis in Belarus have multiplied and more problems are on their way.
The intensification of economic relations with China...
29 April 2015
The first quarter of 2015 displayed a number of distressing trends in Belarusian economy.
The adjustment of the exchange rate has not secured the restoration of competitiveness. Furthermore, the government has to resort to conservative policies for mitigating structural weaknesses.
The economy has gone into recession, which was accompanied by lower real wages and...
08 April 2015
On 2 April, Alexander Lukashenka signed a decree against “social parasites”. From now on, individuals who do not pay taxes will lose be forced to submit around $240 annually into the the state’s coffers.
This law is designed to help stimulate employment and fill any number of budget gaps, but it should be viewed in terms of how it reflects the natin's rising...
20 March 2015
On 17 March, Belarusian President Alexander Lukashenka paid a personal visit to a popular bazaar in Minsk, the capital, to resolve a conflict between the authorities and local street vendors.
Earlier this month, a new government request was issued requiring all street vendors to obtain quality certificates. That prompted the vendors to go on strike.
Although Belarusian officials...
26 February 2015
Belarus is reeling from the effects of the wobbling oil price and Western-imposed sanctions on Russia.
The economy is now paying for the absence of liberal reforms through a decrease in manufacturing, the depreciation of the national currency and the need for budget cuts. The lack of good economic and political news suggests that the recovery will take a long time.
17 February 2015
Whilst 2014 was a bad year for the Belarusian economy on the whole, it brought in plenty of profit for Belavia, Belarusian Airlines and Minsk National Airport.
Without any competition from low-cost airlines, Belavia has been able to safely modernise its fleet of planes and not lose its grip on the market. Whereas in the past the National Airport looked like a trip back to the USSR...