The official Internet portal of the President of the Republic of Belarus
Belarus
20 May 2013

The Republic of Belarus is an export-oriented state with a well-developed production sector, services sector and agriculture. Belarus adheres to the socially-oriented model of the market economy which has proven to be consistent and efficient.

In 2010-2016, the country’s GDP went up 11.2% in comparable prices, the growth of labor productivity in that period was 17.8%.

The GDP per capita, based on the purchasing power parity theory, increased from $15,400 in 2010 to $17,700 in 2015 in the republic. In terms of this, Belarus was ranked 4th in the CIS out of 11 countries ahead of such states as Armenia, Turkmenistan, and Ukraine.

In accordance with the UNDP 2016 Human Development Report, Belarus was ranked 52nd in terms of the human development index, with the highest coefficient among countries with high human development.

MAIN SOCIAL AND ECONOMIC INDICATORS

GDP,
Br billion
Foreign trade in goods, services
$ billion

Industrial output
Br billion

Agricultural output (companies of all kinds),
Br billion

In 2016, the Belarusian ruble was redenominated at a rate of 10,000:1 (Br million).

MAJOR BRANCHES OF BELARUS ECONOMY

The major branches of the Belarusian economy include the processing industry, agriculture, construction, trade, and transport.

TOP 10 BELARUSIAN PRODUCTS

The top ten Belarusian products covering from 30% to 0.6% of the global output are:

freight vehicles, road and construction equipment
tractors and agricultural equipment
refrigerators and household equipment
furniture
fertilizers
fuels
flax fibers
chemical fibers and threads
meat products
dairy products

Manufacturing

In spite of the lack of fuel and energy resources and major raw materials and in spite of external economic shocks of recent years, Belarus has managed to preserve its industrial potential.

The manufacturing sector of the Republic of Belarus is the biggest industry in the country and the flagship of the country’s economy. To a large extent, its development is determined by major economic trends in the republic. This branch accounts for a quarter of the gross domestic product, about 35% of capital assets are concentrated in this segment, 23% of Belarusians are employed in the manufacturing sector.

The Republic of Belarus is placed 37th in the competitive industrial performance index rankings ahead of all CIS countries but for the Russian Federation.

The processing industry which accounted for 86.6% of the total manufacturing output in the country in 2016 is core of the Belarusian manufacturing sector.

Major industries are the production of machines and transport vehicles (10% of the total industrial output), chemical production (10%), manufacture of oil products (15%), food industry (30%).

The share of industries in the total industrial output (2016):

Manufacture of foodstuffs, beverages, and tobacco products 30.1%
Textile and garment industry, manufacture of leather and fur products
4.5%
Manufacture of wooden and paper products, printing industry and distribution of recorded media 4.2%
Production of coke and oil products 15.2%
Chemical industry 9.7%
Pharmaceutical industry
1.4%
Production of rubber and plastic goods, other nonmetal mineral products
8.7%
Metallurgy and manufacture of finished metal products except for machines and equipment
6.9%
Production of computer hardware, electronic and optical devices 1.7%
Production of electric devices 3.2%
Production of machines and equipment, not included in other groups 6.5%
Production of transport vehicles and equipment 3.7%
Manufacture of other finished products, repair and installation of machines and equipment 4.1%

The share of the Republic of Belarus in the gross value added of the global processing industry is 0.12%.

In the world Belarus is famous as a manufacturer of such crucial industrial products as transport vehicles, machines and equipment, chemical products and oil products, foodstuffs and construction materials.

The Republic of Belarus is a leading producer of tractors accounting for about 84% of the global output of tractors in the Eurasian Economic Union. The share of potash fertilizers is about 45% (or one sixth of the global output), nitrogen fertilizers – 11%, freight vehicles – 5%.

Mechanical engineering

Belarus’ mechanical engineering sector includes such branches as the manufacture of machines and electric devices, computer hardware, electronic and optical devices, transport vehicles and equipment. Mechanical engineering accounts for more than 15% of the total industrial output in the country.

Belarus specializes in manufacturing freight vehicles, buses, and rock haulers. The biggest companies are OAO Minsk Automobile Plant (MAZ trademark) – managing company of Belavtomaz Holding Company and Zhodino-based OAO BelAZ – managing company of BelAZ Holding Company. BelAZ accounts for a third of the global market of rock haulers and is one of the world’s leading producers of quarry equipment.

Belarus is also a leading producer of agricultural equipment such as tractors, grain harvesters, all kinds of forage harvesters. OAO Minsk Tractor Works (MTZ trademark) is one of the eight biggest manufacturers of wheeled tractors. Belarusian tractors account for 96% of the global market.

Chemical industry, manufacture of oil products, rubber and plastic goods

The biggest exporters of mineral fertilizers in Belarus are OAO Belaruskali and OAO GrodnoAzot.

OAO Belaruskali is one of the world’s biggest manufacturers of potash fertilizers. The Belarusian enterprise accounts for 16% of the global potassium market. Over 90% of Belaruskali’s output is exported to Europe, Eastern Asia, Mediterranean countries, South Africa, India, China, South and North Americas — a total of 97 countries across the globe.

OAO Belshina is one of Europe’s largest tire producers.

The Belarusian oil processing industry includes Novopolotsk-based Naftan Oil Refinery and Mozyr Oil Refinery. These are modern facilities manufacturing high-quality oil products that are exported to Central and Northwestern Europe.

Metalworking industry

The Belarusian metalworking industry includes about 20 large and medium-sized manufacturers of steel pipes, metal cord, various kinds of wire products, and more than 80 makers of finished metal products such as prefabricated metal structures, various kinds of metal instruments, reservoirs, cisterns, containers, boilers, radiators, fixing hardware, etc.

The Belarusian metalworking industry includes about 20 large and medium-sized manufacturers of steel pipes, metal cord, various kinds of wire products, and more than 80 makers of finished metal products such as prefabricated metal structures, various kinds of metal instruments, reservoirs, cisterns, containers, boilers, radiators, fixing hardware, etc.

BMC Holding was founded in 2012. The main objectives of the holding company are to develop its enterprises and to ensure their innovative improvement, economic efficiency, environmental safety, cost-effective use of resources, and higher competitiveness of products on the markets of the CIS and distant countries. BMC Holding enterprises are doing their best to modernize existing facilities and build new ones to make new competitive products and increase their output.

The holding company includes Belarusian Steel Works (BMZ trademark), Legmash, Polesieelectromash, Kobrin instrument-making plant SITOMO, Rechitsa Metalware Plant, Mogilev Metallurgical Works, Minsk Bearing Plant, Beltsvetmet, Belvtorchermet, BELNIILIT, construction company Zhlobinmetallurgstroy, Zhlobin Opencast Mine of Forming Materials.

Electrical engineering

Electrical engineering enterprises specialize in the manufacture of electric transformers, cables and wires, electric engines, elevator equipment, electric energy meters and electricity distribution equipment.

The holding company Minsk Electrotechnical Plant named after V.I. Kozlov makes excellent electric equipment.

Thanks to the continuous modernization of production facilities and professional advancement of workers, the enterprise has become the biggest manufacturer of potential transformers and has a good reputation on the domestic and international markets. At present the enterprise exports products to more than 25 countries and occupies one of the leading positions in this segment of the economy.

Mogilevliftmash Holding Company is one of the leading manufacturers of high-quality elevators in the CIS and abroad. The lineup of OAO Mogilevliftmash now includes over 130 models of elevators. The enterprise has launched the production of elevating platforms for disabled people. As part of the energy saving program, Mogilevliftmash has produced a series of energy efficient elevators. The plant also sets up the production of escalators. Plans have been made launch the production of travelators (moving walkways) for shopping malls, railway stations and other administrative buildings.

OAO Belaruskabel is a modern enterprise specializing in the production and sale of cables and wires. These products are used in such industries as radio electronics, aircraft engineering, instrument making, construction, communications, telecommunications and electric engineering, gas and oil processing.

OAO Brest Radio Technical Plant makes storeyed distribution switchboards, computers, electric heaters, spare parts for electric and gas stoves.

OAO Brest Electromechanical Plant produces one- and three-phase electric energy meters.

Optical mechanics

BelOMO Holding Company, a big multipurpose enterprise, specializes in the production of laser, optical electronic and mechanic devices and systems.

Minsk Mechanical Plant named after S.I. Vavilov – managing company of BelOMO Holding Company has a big production potential concentrated in specialized production lines.

Today the universal and multipurpose enterprise BelOMO is, first of all, famous for the manufacture of laser, optical electronic and mechanic devices and systems. BelOMO offers aiming devices, binoculars, night vision equipment, etc. The innovative project of BelOMO is the manufacture of infrared cameras.

Instrument making

OAO Gomel Plant of Measuring Equipment is one of the leading instrument making enterprises in the Republic of Belarus specializing in the manufacture of analytical instruments for the regulation of technological processes and environmental monitoring, and electrode systems for potentiometric measurements.

Another instrument making enterprise is OAO Evistor specializing in the production of spare parts (electric mechanisms, electric magnets, electric drives, wipers, variators, transformers) for agricultural machine building.

Energy sector

The Belarusian fuel and energy complex includes companies engaged in production, transportation, and storage of all kinds of energy resources. About 85% of energy resources consumed by the national economy is imported. Electricity generation is the core of the Belarusian fuel and energy complex. It is one of the leading branches of the national economy where a traditionally high level of Belarus’ technical and engineering potential is concentrated. OAO Gazpromtransgaz Belarus distributes and transports gas across Belarus.

In the near future nuclear energy will play a leading role in the fuel and energy complex of Belarus. The decision to build a nuclear power plant with the capacity of up to 2,000MW in Belarus was made in 2008. The NPP will allow reducing the prime cost of produced energy by up to 20%.

Manufacture of foodstuffs, beverages and tobacco products

The production of foodstuffs is a modern and vigorously developing industry in Belarus. Food-making enterprises account for more than one fourth of the processing industry’s output and ensure the food security of the country. Thanks to the comprehensive modernization and the application of modern production technologies, the enterprises of the sector make high quality products which are in demand in the country and abroad.

Major branches are the manufacture of dairy and meat products (more than 50% of the total output of foodstuffs, including beverages and tobacco products). Besides, Belarus is a strong producer of sugar and confectionery, canned fish, fruit and vegetables.

The biggest enterprises of the industry are OAO Savushkin Product, the Belarusian-German joint enterprise Santa Bremor, OAO Slutsk Cheese Factory, OAO Babushkina Krynka, OAO Bellakt, OAO Molochny Gostinets, OAO Spartak, SOAO Kommunarka, OAO Brest Meat Packing Plant, OAO Bereza Cheese Factory, OAO Milkavita, OAO Volkovysk Meat Packing Plant, OAO Molochny Mir, OAO Grodno Meat Packing Plant, OAO Minsk Meat Packing Plant.

Agriculture

Agricultural production accounts for about 6-7% of the country’s GDP. About 9% of the people employed in the national economy work in the agricultural industry.

Belarusian companies almost fully satisfy the needs of the domestic food market. Food import accounts for less than 10% of the total consumption.

About 23.4% of the world’s flax crops are grown in Belarus. Belarus is in the top five countries among the world’s 23 flax fiber manufacturers.

The production of agricultural products per capita meets the level of developed countries. The Republic of Belarus is ranked higher than its CIS partners in terms of production of potatoes, sugar beet, meat and milk.

Belarus is one of the world leaders in terms of per capita production of milk in the world and is placed higher than such countries as the Russian Federation, Ukraine, Kazakhstan, the USA, China. The per capita production of milk in Belarus has reached 752kg.

Belarus is in the top 15 exporters of dairy products in the world. Belarus is in the top five exporters of buttermilk, youghurt, kefir, top seven exporters of butter, top eight exporters of milk whey, milk, skimmed and dried cream.

Belarus has left behind such countries as the Russian Federation, Ukraine, Kazakhstan, the USA, China in the terms of per capita production of meat (123kg). The production of meat per capita in Belarus is two times higher than in Russia, Ukraine, Kazakhstan, and China.

The Republic of Belarus accounts for 0.3% of meat production in the world.

Belarus is in the top 25 exporters of meat. It is the 14th biggest exporter of cooled beef, the 8th exporter of frozen beef, and the 16th exporter of poultry,

According to the Food and Agriculture Organization of the United Nations, Belarus is the 3rd biggest producer of flax fiber, the 5th producer of cranberries, the 7th producer of rye, the 8th producer of triticale, the 13th producer of sugar beet, the 16th producer of strawberries.

Transport and logistics

Belarus is a major transport artery in Eurasia. Every year over 100 million tonnes of European cargoes is transported via Belarus. About 90% of the cargoes is transported between Russia and the European Union. Transit of goods via Belarus is fast and secure. Transport services are rendered by railway, automobile, air, inland water, and pipeline transport operators.

International transport corridors

Belarus is a transit country because of its geographical location. The country is located at the crossroads of major transport routes between Eastern Europe and the East, regions of the Black Sea with the Baltic countries. the territory of Belarus is crossed by two trans-European transport corridors, namely East West Transport Corridor II and the North South Transport Corridor IX with branch IXB.

Foreign trade

The diversity of products made in Belarus has determined the country’s focus on foreign markets.

Belarus is a developed country with open economy. About 60% of products made here are exported.

The Republic of Belarus has a good reputation on the global market of farm produce and foodstuffs. Belarus’ export of farm produce and foodstuffs has exceeded $4 billion in the past two years. The share of such products in the country’s export increased to 17.7% in 2016.

Belarus trades with virtually all countries across the globe. Major trade partners are Russia (51.3% of Belarus’ trade turnover in 2016), Ukraine (7.5%), China (5.1%), Germany (4.5%), Poland (3.9%), the United Kingdom of Great Britain and Northern Ireland (2.4%), the Netherlands (2.2%), Lithuania (2%), Turkey (1.6%), Italy (1.3%), the United States of America (1.3%).

Belarus is now strengthening its position on the global services market. The export of services has increased more than 1.4 times from the level of 2010.

Computer services have been increasingly popular. Their export has risen more than four times in comparison with the level of 2010. The export of these services almost reached $1 billion in 2016, their share in the country’s export grew from 4.5% to 14%.

The Republic of Belarus is one of the world’s leaders in terms of the IT services export per capita. There are six IT companies with Belarusian offices in the 2017 Global Outsourcing 100 rankings. Such Belarusian-made products as Viber and World of Tank are very popular.

Banking system

Belarus has a two-level banking system which is common worldwide. It consists of the National Bank of the Republic of Belarus, or the central bank, and commercial banks.

One of the main objectives of the National Bank is to maintain price stability and a low inflation level.

As of 1 July 2017, there were 27 banks and nonbank financial organizations involved in banking business in Belarus.

The Development Bank of the Republic of Belarus was established following the presidential decree as of 21 June 2011. The bank has been tasked with developing the system to finance national programs and socially important investment projects, export crediting.

© 2017, The Press Service of the President of the Republic of Belarus