Belarus

After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than any of the other former Soviet republics. Belarus and Russia signed a treaty on a two-state union on 8 December 1999 envisioning greater political and economic integration. Although Belarus agreed to a framework to carry out the accord, serious implementation has yet to take place. Since his election in July 1994 as the country's first president, Alexandr LUKASHENKO has steadily consolidated his power through authoritarian means. Government restrictions on freedom of speech and the press, peaceful assembly, and religion continue.

Main Airports

Minsk 1, Minsk 2 (MSQ)

U.S. Embassy

Starovilenskaya 46
tel: (375-17) 210-12-83

Statistics

GDP: purchasing power parity:

$70.68 billion (2005 est.)

GDP - real growth rate:

8% (2005 est.)

GDP - per capita: purchasing power parity:

6,900 (2005 est.)

Inflation rate (consumer prices):

10.3% (2005 est.)

Labor force:

4.3 million (31 December 2005)

Exports:

$16.14 billion f.o.b. (2005 est.)

Exports - partners:

Russia 38%, Ukraine 7.7%, Poland 7%, Latvia 4.1%, UK 4.1%, China 4% (2005)

Imports:

$16.94 billion f.o.b. (2005 est.)

Imports - partners:

Russia 57.5%, Germany 9.7%, Ukraine 6.3%, Poland 5.1% (2005)

Population:

10,293,011 (July 2006 est.)

Population growth rate:

-0.06% (2006 est.)

Population Below Poverty Line:

27.1% (2003 est.)

Major Industries:

metal-cutting machine tools, tractors, trucks, earthmovers, motorcycles, televisions, chemical fibers, fertilizer, textiles, radios, refrigerators

Employing Workers: 31*

Registering Property: 96*

Enforcing Contracts: 36*

Closing a Business: 91*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Belarus	Region
Procedures (number)	16	9.4
Time (days)	69	32

Belarus Risk Assessment

Country Rating

Rating: D

A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.

Risk Assessment

After several years of strong growth largely based on subsidised prices for energy imported from Russia, the short- and medium-term outlook now appears less favourable. Deterioration of the terms of trade, notably resulting from the raising of the price for Russian gas, will tend to slow wage growth, reduce financing by the public sector, and inflate the energy bill for companies and households with slower economic growth the end result. Offsetting effects on two levels — the rise of oil prices (re-export activity) and the energy savings made in industry — should, however, somewhat limit the severity of the slowdown. A better understanding of such trends will be possible once efforts are made to improve the reliability of statistical data.

The current account balance has slipped back into the red since 2006 with the contending with a reduction in its market share in Russia, rising unit labour costs, and appreciation of the real exchange rate compounded by the increase in imported gas prices. In this context, the country's previously limited foreign debt has been growing rapidly. The still insufficient level of foreign exchange reserves and the continued high levels of short-term debt reflect the country's lack of financial room for manoeuvre.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation