Expert: Belarus’ economy successfully adapted to new conditions

Despite harsh sanctions, Belarus has outpaced its closest neighbours in economic growth rates in 2023 and 2024, while also demonstrating results above the world average figures – as noted by Doctor of Physical and Mathematical Sciences, Honoured Scientist of Belarus and Professor at the Belarusian State University’s Department of Analytical Economics and Econometrics Mikhail Kovalev

“Despite all the restrictions imposed by the collective West, Belarus has positive changes in its GDP growth and other indicators. The shock from sanctions in 2022 – causing a drop in Belarusian GDP by 4.7 percent – was overcome in 2023 thanks to the efforts of the Government and the real sector, and due to GDP growth of 3.9 percent, sanctions losses were actually eliminated. Moreover, the pre-sanction standard of living of the population has even increased slightly. The success would have been greater if not for the dry summer, which reduced crop yields and the contribution of domestic agriculture. The most important is that industry has adapted to new conditions, primarily manufacturing: our tractors, harvesters, buses, elevators and other types of goods. The industry demonstrated unprecedented growth caused by the departure of Western competitors from Russia. Indeed, the market does not tolerate a vacuum for long, and today our Asian competitors have flocked to Russia, so continued growth will only be possible if our machine builders learn to compete and win on equal terms. It’s easier with agricultural products which are needed in Russia, as well as in all states with large populations,” the expert explainedю

REFERENCE

The results of Belarus’ socio-economic development for January-February 2024 compared to the same period last year are as follows: GDP growth rate stood at 104 percent, industry accelerated to 107.1 percent, and agricultural output increased to 106.9 percent, with positive foreign trade balance exceeding $98.5m. The growth rate of investment in fixed assets amounts to 103.4 percent, annual inflation in February slowed from 5.9 to 5.6 percent, labour pensions in real terms increased by 9.1 percent in January-February, while growth in real income of the population in January stood at 105.1 percent.