Unlike most other post soviet countries, the Belarusian economy has not been liberalized after the collapse of the Soviet Union. As a result, it is one of the few economies in the world that is still dominated by the state and characterized by strong planned economy el ements. Important economic sectors are primarily agriculture and industry, but Belarus also has a successful IT Sector.

Data from ILOSTAT, own illustration

Economic Development

Due to its strong dependence on exports, the Belarusian Economy was hit particularly hard by the global economic cr isis of 2008. Nevertheless, Belarus was able to record a high economic growth rate in the period 2003 2013, which led to a sharp decline in the number of people below the national poverty line. After briefly stabilizing, the economy slid into the worst rec ession since 1994. The inflation rate was almost 12% and foreign trade fell by around 25% compared with the previous year. In contrast, the impact of the Covid 19 Pandemic was very limited, as Belarus took hardly any restrictive measures, and neither event s were canceled nor stores closed. In 2021, Belarus’ exports grew again, leading to a strong economic upswing. Economic growth is now likely to weaken again due to the sanctions imposed on Belarus for its support in Russia’s war of aggression. Against the backdrop of sanctions, the Belarusian economy is still in good shape. This is due, among other things, to the strong (financial) support by Russia, which partly compensates for the lack of revenues.