Posted: 29.05.2024 15:05:00

Development trend

The Eurasian Development Bank (EDB) has noted the accelerated growth of the Belarusian economy

The EDB has analysed the positive trends in our country’s economy in its weekly macroeconomic review

Minsk Automobile Plant [MAZ brand]       Yury Mozolevsky

In particular, EDB analysts have drawn attention to the fact that Belarusian GDP grew by 5.1 percent year-on-year in four months of 2024 after 4.1 percent in the first quarter. “Industry provided almost half of the GDP growth, having increased output by 7.7 percent year-on-year in January–April after 6.5 percent in January–March,” experts stated. “The growth in agriculture amounted to 6.9 percent year-on-year in January–April after 5.7 percent in January–March.” Analysts also pay attention to the more than twofold increase in investments, which reached 10 percent year-on-year in January–April after 4.8 percent in January–March. According to EDB experts, a high level of final consumption also provided support — retail turnover increased by 12.1 percent year-on-year after 13.1 percent. There is another positive trend that has come to the attention of the bank’s specialists. “The decline in the information technology industry is slowing down, which will reduce the negative contribution to the GDP formation. Housing construction is demonstrating recovery, as well,” the EDB macro review notes.

Record figure

The exports of goods by resident companies of the Belarusian free economic zones (FEZ) exceeded $2 billion in January–March 2024. According to the results of three months of 2024, the indicators of FEZ residents showed positive dynamics, as reported by the press service of Belarus’ Economy Ministry.
The economic department of the country has explained that enterprises paid 32.2 percent more taxes to the state budget, and increased investment volumes by 28.8 percent. The average monthly salary of employees increased by more than 22 percent, revenue — by 17.6, production output — by 16.6, net profit — by 11 percent. “Exports of goods in the first quarter of 2024 increased by 3.5 percent compared to the same period in 2023. At the same time, the volume of exports amounted to $2.1 billion, which is a record figure for the first quarter of the year for the entire period of FEZ operation,” Belarus’ Ministry of Economy added.
In particular, the enterprises significantly bolstered the supply volume of their products to Asian countries: to Kazakhstan — by 1.1 times, to India — by 1.2, to Tajikistan — by 1.3, to China — by 1.5, to Türkiye — by 1.6, to Turkmenistan — by 2.1, to Iraq — by 4.5. 
The Ministry has also noted that FEZ residents continue to have a considerable impact on regional indicators, forming up to 50 percent of export volumes in a number of Belarus’ regions. The leaders in terms of exports are Minsk Free Economic Zone, as well as the FEZ of Gomel and Mogilev regions.
By the way, over the past period of the year, the composition of FEZ residents has been replenished with ten new enterprises with plans to create over 500 new jobs. Thus, new investors are planning to implement projects in metalworking, machine building, chemical and polymer industries, production of charging infrastructure for electric transport, and more.

By Vladislav Sychevich