Business in Belarus 2014: Status, Trends, Perspectives

The events of 2014 had a significantimpact on the development of the Belarusian economy. While the country continued to experience some internal problems (such as high inflation, lack of accessible and affordable credit, continuing gradual devaluation of the national currency and periodic decline in real average wages), Belarusian authorities were faced with new economic threats from the outside.

 

The first such issue was the Ukrainian crisis and worsening of relations (including trade and economic relations) between Russia and the European Union. Of course, on the one hand, these events were to a certain extent of benefit for Belarus, as they helped local enterprises fill the niches vacated as a result of mutual sanctions of Kiev, Moscow and Brussels. However, on the other hand, the conflict with the EU had a dramatically negative impact on the Russian economy tied closely with the economy of Belarus. As a result, the traditional market for Belarusian products shrank, while the devaluation of the Russian ruble (exceeding the devaluation of the Belarusian currency) led to a further decrease of the competitiveness of domestic products.