Belarus Industry Sectors

By: EconomyWatch Content   Date: 10 March 2010

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 With a substantial contribution of 39.7% by the Belarus industry sectors, the Belarus economy reported a GDP (purchase power parity) of $111.9 billion in 2009. Although the rough economic scenario of recession marred the growth rate and had a reducing effect on the amount (in 2008, the GDP was $115.7 billion), the Belarus industry sectors, along with the service sector, kept the economy sailing. 

Belarus Industry Sectors

The Belarus industry sector employs almost 35% of Belarus’ labor force and has a wide variety of organic industries, which are placed in proximity to the place of natural occurrence of the raw materials. For this reason, the industry is spread across the length and breadth of the country.

The various verticals within the Belarus industry sector are:

  • Metal-cutting machine tools

  • Tractors

  • Trucks

  • Earthmovers

  • Motorcycles

  • Televisions

  • Synthetic Fibers

  • Fertilizer

  • Textiles

  • Radios

  • Refrigerators

 

Although the official statements mention that Belarus had an unemployment rate of around 1.6% in 2009, due to the strict regulations and disguised unemployment, many analysts express their negation and speculate that the unemployment rate is around 15%.

 

Mentioned below is how the unemployment rate has been projected by the country’s authorities over the year.

 

Unemployment Rate 2003-2009

 

 

The biggest challenge that the Belarus industry sector faces is FDI. The US government does not encourage companies to invest in Belarus due to its stringent policies, arbitrary legal system, cumbersome licensing system, price controls and lack of independent judiciary. The Belarus industry sectors suffer even more due to the economic climate, exacerbated by the IMF and World Bank policies of canceling or suspending their co-operation with Belarus.

 

However, increased cooperation from Russia has kept the industry sector as well as the services going. New reformative polices are being implemented to get the currency on the international platform. The currency has been devalued and other macroeconomic tools are being used to bring the economy in demand and thus attract FDI for Belarus’ industry sectors.

 


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