MINSK, 13 March (BelTA) - Belarus maintains high economic growth rates, according to the macroeconomic review of the Eurasian Development Bank (EDB), BelTA has learned.
2024
“The Belarusian economy maintained high growth rates due to strong performance in industry, construction and trade. Domestic demand remains the key driver of economic activity,” the EDB said.
In 2024 the economy of Belarus expanded by 4% following a 3.9% increase in 2023. The key driver was industry, which showed plus 5.4%, secured about 1.4% of GDP growth. High demand from Russia is the main factor behind the increase in the Belarusian industrial output. Trade and construction played a significant role in the expansion of economic activity, providing about 0.8% and 0.5% of GDP growth, respectively. Growth in IT restored with value added in the information and communication sector going up 1.8%.
Consumer demand has become an important factor in strengthening the economy in 2024. High growth of real incomes in the context of rising wages was the key factor behind the increase in consumption. High credit activity of the population also supported the expansion of domestic demand. Retail trade grew 11.8% in 2024, largely due to non-food trade (plus 17.6%), reflecting higher levels of prosperity. Public catering turnover increased by 10.6% and paid services went up 10%.
“Investment activity continued to expand. The growth of capital investment was facilitated by government measures, including reduced taxes on imported equipment, improvements introduced to investment legislation. Capital investment in 2024 grew 8%. Enterprises actively invested their own funds and attracted loans to expand production,” the EDB said.
Real wages rose 13% in 2024 after going up by 11.6% in 2023. The 2024 unemployment rate fell by 0.5% to a historic-low 3%.
Inflation slowed to 5.2% in December 2024, down from 5.8% in December 2023 (with the National Bank's target of no higher than 6%). “Thanks to moderate price growth during 2023-2024, inflation expectations have decreased, which will contribute to further disinflation process in the current year,” the EDB said.
Early 2025
“Belarus' GDP grew by 3.7% in January 2025 mainly due to the sectors focused on consumer demand and construction. Inflation is near the target level of the National Bank,” the EDB said. Retail trade in January ramped up by 12.2%, the volume of contracting works - by 10.3%.
Wages keep growing in early 2025. In January, wages edged up by 13.5% through an increased base rate of labor remuneration and expanded allowances for certain categories of budgetary employees. Given the forthcoming increase in labor remuneration in the budget sector, EDB analysts expect further growth of wages.
Gold and foreign exchange reserves of Belarus reached a five-year high and continued to grow, increasing by $795.1 million in 2024 and reaching $8.9 billion at the beginning of 2025. The main factor was the appreciation of gold - its price rose by 25.5% last year. In January 2025, gold and forex reserves increased by another $410.6 million, reaching $9.3 billion. This is their highest level in the past five years.
According to the review, in early 2025, despite global challenges, the economies within the EDB's area of operations demonstrate strong growth based on domestic demand, investment activity and the development of key industries. In 2024, the total GDP of the EDB's member countries grew by 4.3%, maintaining the record-high level of the previous year.
2024
“The Belarusian economy maintained high growth rates due to strong performance in industry, construction and trade. Domestic demand remains the key driver of economic activity,” the EDB said.
In 2024 the economy of Belarus expanded by 4% following a 3.9% increase in 2023. The key driver was industry, which showed plus 5.4%, secured about 1.4% of GDP growth. High demand from Russia is the main factor behind the increase in the Belarusian industrial output. Trade and construction played a significant role in the expansion of economic activity, providing about 0.8% and 0.5% of GDP growth, respectively. Growth in IT restored with value added in the information and communication sector going up 1.8%.
Consumer demand has become an important factor in strengthening the economy in 2024. High growth of real incomes in the context of rising wages was the key factor behind the increase in consumption. High credit activity of the population also supported the expansion of domestic demand. Retail trade grew 11.8% in 2024, largely due to non-food trade (plus 17.6%), reflecting higher levels of prosperity. Public catering turnover increased by 10.6% and paid services went up 10%.
“Investment activity continued to expand. The growth of capital investment was facilitated by government measures, including reduced taxes on imported equipment, improvements introduced to investment legislation. Capital investment in 2024 grew 8%. Enterprises actively invested their own funds and attracted loans to expand production,” the EDB said.
Real wages rose 13% in 2024 after going up by 11.6% in 2023. The 2024 unemployment rate fell by 0.5% to a historic-low 3%.
Inflation slowed to 5.2% in December 2024, down from 5.8% in December 2023 (with the National Bank's target of no higher than 6%). “Thanks to moderate price growth during 2023-2024, inflation expectations have decreased, which will contribute to further disinflation process in the current year,” the EDB said.
Early 2025
“Belarus' GDP grew by 3.7% in January 2025 mainly due to the sectors focused on consumer demand and construction. Inflation is near the target level of the National Bank,” the EDB said. Retail trade in January ramped up by 12.2%, the volume of contracting works - by 10.3%.
Wages keep growing in early 2025. In January, wages edged up by 13.5% through an increased base rate of labor remuneration and expanded allowances for certain categories of budgetary employees. Given the forthcoming increase in labor remuneration in the budget sector, EDB analysts expect further growth of wages.
Gold and foreign exchange reserves of Belarus reached a five-year high and continued to grow, increasing by $795.1 million in 2024 and reaching $8.9 billion at the beginning of 2025. The main factor was the appreciation of gold - its price rose by 25.5% last year. In January 2025, gold and forex reserves increased by another $410.6 million, reaching $9.3 billion. This is their highest level in the past five years.
According to the review, in early 2025, despite global challenges, the economies within the EDB's area of operations demonstrate strong growth based on domestic demand, investment activity and the development of key industries. In 2024, the total GDP of the EDB's member countries grew by 4.3%, maintaining the record-high level of the previous year.
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