Indicator of improving living standards

Belarusians spend a significant portion of their income on non-food goods and services

The National Statistical Committee has published data from a sample household survey on living standards. According to the report, in the first quarter of this year, cash expenditure per household amounted to 2,894.6 Belarusian roubles per month, of which 1,934.9 Belarusian roubles — or, if you will, 66.9 percent — went towards consumer needs. Within the structure of consumer spending, the share allocated to food stood at 38.4 percent, non-food goods at 34.9 percent, and services at 24.4 percent. What do these figures signify? 

Positive trend

Generally speaking, experts agree that rising expenditure on non-food goods serves as the best reflection of improving living standards. The statistical data confirm this. Between January and April, Belarus’ economic development was marked by a positive trajectory. Compared with the same period last year, volumes of gross domestic product (GDP), agricultural production, retail turnover and foreign trade in goods all increased, while price growth slowed.
GDP for the first four months of this year reached 94.5bn Belarusian roubles and, in comparable prices, rose by 0.2 percent relative to the corresponding period last year. Positive contributions to GDP formation came from the IT sector, transport activities, retail trade and agriculture. In the final month of the period, both industry and fixed capital investment returned to a recovery dynamic.
It is also worth noting the strong demand for Belarusian food products and agricultural raw materials on external markets. These goods account for a quarter of the country’s total export shipments. In January to April 2026, deliveries of these products abroad exceeded $3.7bn — an increase of 26.9 percent, or $799m in equivalent terms, compared with the same period last year.
Moreover, the foreign trade sector of our national economy is developing at a brisk pace. By the end of four months this year, steady positive trends had emerged in merchandise trade: an increase in export volumes, a broadening of export destination markets, and a reduction in the negative trade balance.

Measures introduced on the President’s instruction to improve the pricing regulation system have helped stabilise the consumer market and considerably slow inflationary pressures. As a result, last April saw the consumer price index reach 102.5 percent relative to December of the previous year (compared with 103.8 percent in the same period last year). This is virtually the lowest figure among the CIS countries. Inflation stood at 3.1 percent in Russia, 3.6 percent in Kazakhstan, and 4.5 percent in Armenia.

Real disposable money incomes in the first quarter of this year rose by 7.6 percent compared with the same period last year, while real wages (in January to April this year versus the corresponding period of the previous year) grew by seven percent.
“Income growth has led to a reduction in the proportion of the population living on low incomes. Today, only 3.3 percent of citizens fall into the low-income category — the lowest figure in the entire history of sovereign Belarus,” the National Statistical Committee noted. “The labour market remains stable. The actual unemployment rate (according to ILO methodology) stood at 2.3 percent in the first quarter of this year, down from 2.8 percent in the first quarter of last year, which ranks among the lowest unemployment levels in the world.” 

Natural outcome

Experts note that rising incomes lead to an increase in the share of savings and greater consumption of high-quality goods and services. This year, Belarusians’ savings are showing vigorous growth compared with last year. The total volume of time deposits held by individuals in Belarusian banks at the end of the first quarter rose by 5.9 percent relative to the end of the previous year, and by nearly 20 percent compared with the same period last year.
Overall, the shift in consumption patterns points to a trend towards an improvement in people’s quality of life. Belarusians now have disposable income left after purchasing a basic basket of foodstuffs, and are able to acquire increasingly expensive manufactured goods.
“Growth in spending on non-food goods has traditionally been regarded as an indicator of rising living standards. After all, it signals a decline in the share of expenditure devoted to food — a basic need gradually giving way to more sophisticated forms of consumption: durable goods, services, education and leisure. This logic, known as Engel’s Law, is manifesting itself in Belarus,” notes Anastasiya Bobrova, Head of the Centre for Human Development and Demography at the Economics Institute under Belarus’ National Academy of Sciences. “In recent years, the structure of consumption has been shifting: the population is spending more and more on services and non-food goods. This indicates a transition towards a model of comfort and self-fulfilment. However, it is also important to take into account the price factor: the increase in expenditure is partly driven by inflation, which affects all categories, including food. Nonetheless, taken together, these changes can be viewed as an indicator of a gradual enhancement in the quality of life.”

By Vladislav Sychevich