Economic and Political Overview

flag Belarus Belarus: Economic and Political Overview

In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

 

Economic Indicators

On February 24, 2022, Russia initiated a military conflict on the Ukrainian territory, dragging in Belarus as its ally facilitating the invasion of Ukraine, which profoundly upsets the current political context in these countries and will have substantial political and economic ramifications. For the ongoing updates on the developments of Russia-Ukraine conflict please consult the dedicated pages on BBC News.

Belarus is undergoing an economic transition, inheriting structural features from the former Soviet bloc. The country heavily relies on Russia, its largest trading partner, and to a lesser extent on Ukraine, whose economic and political situation has negatively influenced Belarus in recent years, particularly following the Russian invasion. In 2024, Belarus saw stronger-than-expected growth (estimated at 4% as per official governmental figures), due to robust consumer spending, rising investment activity, and heightened demand from Russia. Moreover, the government boosted domestic demand through administrative measures and expansionary policies. However, potential GDP remains constrained by sanctions and limited access to advanced technologies, despite efforts to spur investment. With Russia’s economy slowing and monetary policy tightening, Belarus’s overheated economy is expected to decelerate to 1.2% in 2025. Consumption will remain the main growth driver but at a slower pace due to a tight labour market, while investments will contribute positively but face monetary constraints. Net exports may weigh on growth due to market dependence and a challenging external environment (World Bank).

Since the financial crisis in 2011, Belarus's economy has been influenced by significant internal and external imbalances, heavily supported by loans from Russia. Consequently, the economy is vulnerable to external shocks and fluctuations in Russia's economic performance. The debt-to-GDP ratio stood at an estimated 41.4% in 2024, up from 40.7% the previous year, and is expected to remain relatively stable, at 40.3% in 2025 and 40.6% next year (IMF). Approximately one-third of the debt is held in foreign currencies, increasing risks associated with the depreciation of the Belarusian ruble. The government budget recorded a deficit of BYN 4.8 billion as per the Ministry of Finance. The country’s 2025 budget projects a deficit of BNY 4.5 billion (1.6% of GDP), with revenues of BNY 45.5 billion and expenditures of BNY 50 billion. Average annual inflation stood at 5.7% in 2024, slowing from 5.8% in 2023 and 12.8% the previous year.

Belarus exhibits relatively low levels of poverty and inequality, with a poverty rate of less than 1% in 2024 according to the latest figures from the World Bank (based on the upper-medium income poverty line). However, the country faces uneven progress in transitioning to a market economy and democracy, and the current economic and political crisis threatens to increase poverty levels. The unemployment rate stood at 3% last year and is projected to decrease by 0.1 percentage points in 2025, according to the IMF. However, in the medium term, inflation, a tight labour market, financial losses in enterprises, and a shift of resources to less productive sectors may reduce the effectiveness of economic stimulus measures.

 
Main Indicators 2023 (E)2024 (E)2025 (E)2026 (E)2027 (E)
GDP (billions USD) 71.7973.1376.8780.2783.74
GDP (Constant Prices, Annual % Change) 3.93.62.31.91.4
GDP per Capita (USD) 7,8228,0088,4608,8789,308
General Government Balance (in % of GDP) 0.50.4-0.4-1.3-2.0
General Government Gross Debt (in % of GDP) 40.741.440.340.639.9
Inflation Rate (%) 5.06.06.46.15.8
Unemployment Rate (% of the Labour Force) 3.53.02.92.92.9
Current Account (billions USD) -1.30-1.43-1.83-2.22-2.25
Current Account (in % of GDP) -1.8-2.0-2.4-2.8-2.7

Source: IMF – World Economic Outlook Database , Latest available data

Note: (e) Estimated Data

Main Sectors of Industry

Belarus possesses several natural resources on its territory, including wood, minerals, small fields of oil and natural gas, granite, limestone, clay, sand, peat, and dolomite. Agriculture accounts for 7.3% of the country's GDP and employs 10% of the working population (World Bank, latest data available). The main agricultural products are beef, pork, poultry, milk, and cereals (including potatoes, vegetables, cucurbits, and seeds). Belarus is the world's third-largest producer of rye and flax fibre. The country is also among the largest exporters of butter, chicken, and cheese globally. Nearly 60% of agricultural production is concentrated in highly subsidized state-owned cooperative farms, inherited from kolkhozes, which formed the basis of the Soviet Union's agricultural policy. Belarusian agriculture heavily depends on the Russian market, to which it exports around 90% of its agricultural products. According to data from the National Statistics Committee, Belarusian agricultural output in 2024 totalled USD 11.1 billion, with agricultural organisations producing USD 9.07 billion, a 5.1% increase from the previous year. Moreover, food and agricultural raw material exports rose by 14.4%.

Industry contributes 32.5% of the country's GDP and employs around 31.1% of the active population. As a former country of the USSR, Belarus has a developed but ageing industrial base that is heavily subsidized. The main industries include machine tools, agricultural equipment, fertilizers, petroleum and chemical products, food products (including beverages and tobacco), prefabricated building materials, motor vehicles, textiles, and household goods equipment (such as refrigerators, watches, televisions, and radios). The manufacturing sector alone contributes 23% of the country’s GDP, with the manufacture of food products and coke and refined petroleum products accounting for a significant share. According to Belstat, in 2024, the volume of industrial production in current prices stood at BYN 202.4 billion, up by 5.4% compared to one year earlier. Production in the mining industry increased by 3.6%, and by 5.5%in the manufacturing sector.

The tertiary sector contributes 47.8% of GDP and has experienced significant growth since the break-up of the USSR, employing 58.9% of the working population. Key sectors include financial services, information technology, transportation, and tourism. Transport services, accounting for almost 42% of the country's total services exports and more than 50% of the balance of foreign trade in services, make up around 6% of GDP. Commerce is also a crucial economic sector, contributing substantially to the nation's GDP: in January-November 2024, retail trade totalled BYN 80.8 billion, up 11.8% as against the same period of last year in comparable prices. The tourism sector is mainly based on Russian visitors, who accounted for 80% of total foreign arrivals in 2024.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 10.0 31.1 58.9
Value Added (in % of GDP) 7.3 32.5 47.8
Value Added (Annual % Change) -0.4 8.4 1.4

Source: World Bank - Latest available data.

 

Find more information about your business sector on our service Market Reports.

 
 
Monetary Indicators 20162017201820192020
Belarussian Rubble (BYR) - Average Annual Exchange Rate For 1 MUR 331.830.060.060.060.06

Source: World Bank - Latest available data.

 
 

Find out all the exchange rates daily on our service Currency Converter.

Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
61/100
World Rank:
95
Regional Rank:
43

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

See the country risk analysis provided by Coface.

 

Return to top

Foreign Trade in Figures

The Belarusian economy is predominantly state-owned, with over 70% of GDP generated by public or parastatal enterprises. Simultaneously, it remains highly open to international trade, which constitutes 133% of its GDP (World Bank, latest data available). Belarus exports a variety of products including oil and petroleum products, fertilizers, trucks and tractors, spare parts, milk and cheese, meat products, furniture and timber, and tyres. A significant portion of its manufactured goods, over 60%, is exported to foreign markets. Notably, the mechanical engineering industry plays a crucial role, with 75% of goods in this segment sold outside the country (official governmental data). On the import side, Belarus primarily brings in cars (23.1%), broadcasting equipment (3.5%), video displays (2.5%), packaged medicaments (2.5%), and light rubberized knitted fabric (2.2% - data by OEC).

Excluding Russia, which is the main trading partner, in 2023, Belarus' major export destinations included China (34.2%), Kazakhstan (9.9%), Uzbekistan (6.7%), Poland (5.9%), and Brazil (5.5%). Conversely, imports were chiefly sourced from China (32.7%), Poland (16.0%), Germany (11.5%), Lithuania (10.3%), and Turkey (9.4% - data OEC). Due to historical ties from the Soviet era, Belarus' economy remains heavily concentrated on the Russian market, serving as both a major outlet and supplier. Recent developments have seen strengthened trade relations with China, particularly through Beijing's New Silk Road project. However, the European Union, Belarus' second-largest trading partner, withheld ratification of the bilateral partnership and cooperation agreement due to concerns over "Belarus' lack of commitment to democracy and political and civil rights”.

Belarus' trade balance has experienced fluctuations in recent years. In 2023, exports amounted to USD 40.1 billion (+5.1% y-o-y) for goods and USD 8.6 billion (-6.5%) for commercial services, while imports totalled USD 43.2 billion (+12.9% y-o-y) for goods and USD 5.9 billion (17.8%) for commercial services (data by WTO). The World Bank reports Belarus registered a trade surplus of 0.6% of GDP in 2023 (from 6.1% one year earlier).  Preliminary figures from Belstat indicate that in 2024, the foreign trade turnover for goods and services increased by 5.1% y-o-y, exceeding USD 100 billion, with exports at USD 49.4 billion and imports totalling USD 50.7 billion.

 
Foreign Trade Indicators 20192020202120222023
Imports of Goods (million USD) 39,47732,76741,38738,31143,256
Exports of Goods (million USD) 32,95529,17939,76238,22040,168
Imports of Services (million USD) 5,8524,8475,6765,0215,916
Exports of Services (million USD) 9,6428,78810,3139,2018,597
Imports of Goods and Services (Annual % Change) 5.1-7.45.7-18.222.6
Exports of Goods and Services (Annual % Change) 1.0-3.710.1-21.018.7
Imports of Goods and Services (in % of GDP) 65.857.965.257.066.2
Exports of Goods and Services (in % of GDP) 65.161.070.863.166.8
Trade Balance (million USD) -4,193-1,993-667385-2,528
Trade Balance (Including Service) (million USD) -4031,9483,9504,686249
Foreign Trade (in % of GDP) 130.9118.9136.0120.0133.0

Source: WTO – World Trade Organisation ; World Bank , Latest Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2021
Russia 35.0%
Poland 4.0%
Ukraine 3.0%
Lithuania 3.0%
Germany 2.0%
See More Countries 53.0%
Main Suppliers
(% of Imports)
2021
Russia 28.6%
China 8.1%
Germany 3.6%
Ukraine 3.4%
Poland 2.5%
See More Countries 53.7%

Source: Comtrade, Latest Available Data

 
 

Main Products

39.9 bn USD of products exported in 2021
Cheese and curdCheese and curd 3.0%
Wood sawn or chipped lengthwise, sliced or peeled,...Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness of > 6 mm 2.0%
Furniture and parts thereof, n.e.s. (excl. seats...Furniture and parts thereof, n.e.s. (excl. seats and medical, surgical, dental or veterinary furniture) 1.6%
Bars and rods, of iron or non-alloy steel, not...Bars and rods, of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but incl. those twisted after rolling (excl. in irregularly wound coils) 1.4%
Milk and cream, concentrated or containing added...Milk and cream, concentrated or containing added sugar or other sweetening matter 1.4%
See More Products 90.7%
41.8 bn USD of products imported in 2021
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.9%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 1.4%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 1.2%
Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528) 1.1%
Ferrous waste and scrap; remelting scrap ingots of...Ferrous waste and scrap; remelting scrap ingots of iron or steel (excl. slag, scale and other waste from the production of iron or steel; radioactive waste and scrap; fragments of pigs, blocks or other primary forms of pig iron or spiegeleisen) 1.1%
See More Products 92.3%

Source: Comtrade, Latest Available Data

 
 

To go further, check out our service Import-Export Flows.

 

Return to top

Sources of General Economic Information

Ministries
Ministry of Finance (in Belarusian only)
Statistical Office
The Ministry of Statistics and Analysis of the Republic of Belarus
Central Bank
National Bank of the Republic of Belarus
Stock Exchange
Belarusian Stock Exchange
Search Engines
Akavita
Zubr
Economic Portals
Portal of the Republic of Belarus

Return to top

Political Outline

Current Political Leaders
President: Aleksandr LUKASHENKO (since 20 July 1994)
Prime Minister: Roman GOLOVCHENKO (since 4 June 2020)
Next Election Dates
Presidential: 2030
National Assembly: February 2029
Main Political Parties

Political parties in support of the President have a strong chance of securing seats during elections. Opposition parties are allowed to participate in elections but usually have no real chance of gaining power. Elections are generally marred by electoral fraud, and in 2019 OECD observers determined that the election was neither free nor impartial, with problems in the counting of the votes.

The current largest political forces represented in the parliament following the 2024 election all support president Lukashenko. They are:

- Belaya Rus: a public association that supports President Lukashenko, Russophilia, Euroscepticism
- Republican Party of Labor and Justice: centre-left, socialism
- Communist Party of Belarus (CPB): left-wing, liaises with numerous other communist parties
- Liberal Democratic Party (LDP): right-wing, conservative.

Other parties/organizations include:

Pro-government:

  • Belarusian Agrarian Party
  • Belarusian Patriotic Party
  • Belarusian Social Sport Party
  • Republican Party
  • Social Democratic Party of Popular Accord

Opposition:

  • Belarusian Christian Democracy Party
  • Belarusian Party of the Green
  • Belarusian Party of the Left "Just World"
  • Belarusian Social-Democratic Assembly
  • Belarusian Social Democratic Party
  • Belarusian Social Democratic Party
  • BPF Party
  • Christian Conservative Party-BPF
  • United Civic Party.
Type of State
Officially a Republic based on parliamentary democracy; although it is considered an authoritarian or dictatorship regime by most Western states.
Executive Power
The President is the head of state and is elected by popular vote for a five-year term, with no term limits. The President holds executive powers. The Prime Minister, Deputy Prime Ministers, and the Council of Ministers are appointed by the President, with the Prime Minister’s appointment requiring approval by the National Assembly.
Legislative Power
The legislature in Belarus is bicameral. The National Assembly consists of two chambers: the Council of the Republic (the upper house), with 64 seats, 56 of which are elected by regional councils and 8 appointed by the President, all serving four-year terms; and the House of Representatives (the lower house), with 110 seats, all members elected by universal adult suffrage to serve four-year terms. The people of Belarus have limited political rights.
 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
158/180
 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Not Free
Political Freedom:
7/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

Return to top

Any Comment About This Content? Report It to Us.

 

© eexpand, All Rights Reserved.
Latest Update: May 2025