EDB links Belarus’ economy contraction to falling agricultural production

November 21, BPN. A decline in agricultural production was the most likely cause of Belarus’ GDP drop by 4.7 percent in October, the Eurasian Development Bank (EDB) said in its recent weekly macroeconomic report.

Agricultural production fell by 2.7 percent year on year in October, following a 16.2-percent growth in September, the analysts noted. They linked the drop to the completion of the harvesting campaign and the continuing weak performance of livestock farming.

Negative trends in the manufacturing industry also intensified last month with a drop of 4.3 percent against 3.9 in September, the report said, noting possible difficulties with sales on foreign and domestic markets.

The recession also deepened in the IT sector amid low consumer demand, with investment in fixed assets down by 18 percent and retail sales, by 7.8 percent, the report noted. At the same time, it noted that a slowdown of construction decline was beneficial for the GDP.

Belarus’ economy contraction may remain at current levels in November, the EDB said.

Belarus’ GDP fell by 4.7 percent from January to September, according to the National Statistical Committee (Belstat).

In July, Alaksandr Łukašenka demanded that it should be maintained at last year’s level. The government had projected economic growth of 2.9 percent for 2022, and of 3.8 percent for 2023.