Updated at 13:40,22-07-2024

Adaptation of Belarusian economy to sanctions hinges on realization of comprehensive plan

Adaptation of Belarusian economy to sanctions hinges on realization of comprehensive plan
Dmitry Yaroshevich. An archive photo
How fast the economy will adapt to the pressure of sanctions will depend on the successful realization of the comprehensive plan. Belarusian Deputy Economy Minister Dmitry Yaroshevich made the statement as he commented on Q1 2022 results, BelTA has learned.

According to the National Statistics Committee, Belarus' GDP growth rate totaled 99.6% in January-March. Dmitry Yaroshevich said: “Last year the economy successfully handled existing restrictions and demonstrated positive dynamics. Today industries are experiencing additional negative influence due to new, more massive sanctions. In order to offset those, the government has passed a number of regulatory acts, including a comprehensive plan on supporting the economy. It is obvious that these measures will not produce an effect right away. For now we have to put up with some decrease in GDP growth. But it should not reflect upon the unconditional priority – preserving living standards of the population.”

In his words, the fulfillment of the task remains on track. Real earnings rose by 2.2% in January-February. The effective work of the industries, which demonstrated rather good performance even in the past, allows one to expect further increase in real earnings.

“The manufacturing sector remains in the green zone. According to our estimates, the IT industry will continue performing considerably well. A spike in the population's demand for Belarusian foods helped retail trade,” he said. The fact that the industries which previously lagged behind are catching up is as important. In particular, in March agriculture performance increased by 10.8% in comparison with February. Freight turnover and passenger turnover also increased – by 8.6% and 20.1% respectively.

“In order to secure these positive trends, enterprises and the private sector should more actively redirect exports to markets of friendly countries, develop manufacturing cooperation and import substitution, create stable financial and logistical schemes. The comprehensive plan specifies how government agencies are supposed to facilitate this work. The successful realization of the plan by all parties will determine the speed of adaptation of our economy to external pressure,” the deputy economy minister noted.