Economy - overview:
Belarus's economy in 2006 posted more than 8% growth. The government has succeeded in lowering inflation over the past several years. Trade with Russia - by far its largest single trade partner - decreased in 2006, largely as a result of a change in the way the Value Added Tax (VAT) on trade was collected. Trade with European countries increased. Belarus has seen little structural reform since 1995, when President LUKASHENKO launched the country on the path of "market socialism." In keeping with this policy, LUKASHENKO reimposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene in the management of private enterprises. Since 2005, the government has re-nationalized a number of private companies. In addition, businesses have been subject to pressure by central and local governments, e.g., arbitrary changes in regulations, numerous rigorous inspections, retroactive application of new business regulations, and arrests of "disruptive" businessmen and factory owners. A wide range of redistributive policies has helped those at the bottom of the ladder; the Gini coefficient is among the lowest in the world. Because of these restrictive economic policies, Belarus has had trouble attracting foreign investment, which remains low. Growth has been strong in recent years, despite the roadblocks in a tough, centrally directed economy with a high, but decreasing, rate of inflation. Belarus receives heavily discounted oil and natural gas from Russia and much of Belarus' growth can be attributed to the re-export of Russian oil at market prices. This growth will be threatened in 2007, however, when Russia raises energy prices closer to world market prices for Belarus. Russia is planning to increase Belarusian gas prices from $47 per thousand cubic meters (tcm) to $200 per tcm and introduce a first-time export duty of $180 per ton on oil shipped to Belarus.

GDP (purchasing power parity):
$80.74 billion (2006 est.)

GDP (official exchange rate):
$28.56 billion (2006 est.)

GDP - real growth rate:
8.3% (2006 est.)

GDP - per capita (PPP):
$7,800 (2006 est.)

GDP - composition by sector:
agriculture: 9.3%
industry: 31.6%
services: 59.1% (2005 est.)

Labor force:
4.3 million (31 December 2005)

Labor force - by occupation:
agriculture: 14%
industry: 34.7%
services: 51.3% (2003 est.)

Unemployment rate:
1.6% officially registered unemployed; large number of underemployed workers (2005)

Population below poverty line:
27.1% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 5.1%
highest 10%: 20% (1998)

Distribution of family income - Gini index:
30.4 (2000)

Inflation rate (consumer prices):
9.5% (2006 est.)

Investment (gross fixed):
25.9% of GDP (2006 est.)

Budget:
revenues: $6.578 billion
expenditures: $7.164 billion; including capital expenditures of $180 million (2006 est.)

Agriculture - products:
grain, potatoes, vegetables, sugar beets, flax; beef, milk

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

Industrial production growth rate:
15.6% (2005 est.)

Electricity - production:
29.33 billion kWh (2004)

Electricity - consumption:
31.05 billion kWh (2004)

Electricity - exports:
4.723 billion kWh (2004)

Electricity - imports:
8.5 billion kWh (2004)

Oil - production:
34,260 bbl/day (2004 est.)

Oil - consumption:
165,000 bbl/day (2004 est.)

Oil - exports:
14,500 bbl/day (2003 est.)

Oil - imports:
360,000 bbl/day (2004 est.)

Natural gas - production:
180 million cu m (2004 est.)

Natural gas - consumption:
20.5 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2004 est.)

Natural gas - imports:
16.22 billion cu m (2004 est.)

Current account balance:
$-511.8 million (2006 est.)

Exports:
$19.61 billion f.o.b. (2006 est.)

Exports - commodities:
machinery and equipment, mineral products, chemicals, metals, textiles, foodstuffs

Exports - partners:
Russia 35.8%, Netherlands 15.1%, UK 7%, Ukraine 5.7%, Poland 5.3%, Germany 4.4% (2005)

Imports:
$21.12 billion f.o.b. (2006 est.)

Imports - commodities:
mineral products, machinery and equipment, chemicals, foodstuffs, metals

Imports - partners:
Russia 60.6%, Germany 6.7%, Ukraine 5.4% (2005)

Reserves of foreign exchange and gold:
$1.329 billion (2006 est.)

Debt - external:
$5.498 billion (30 June 2006 est.)

Economic aid - recipient:
$194.3 million (1995)

Currency (code):
Belarusian ruble (BYB/BYR)

Exchange rates:
Belarusian rubles per US dollar - 2,220 (2006), 2,150 (2005), 2,160.26 (2004), 2,051.27 (2003), 1,790.92 (2002)