Belarus’ economy lags behind in Russia-led economic union

April 13, BPN. Belarus showed poor economic performance in the Eurasian Economic Union (EAEU) in the first two months of 2023, according to data from the Eurasian Economic Commission’s (EEC) statistics department.

The union’s GDP fell by 1.6 percent in January-February year on year, falling by 4.7 percent in Belarus and growing by 12.6 percent in Armenia.

The EAEU’s industrial production fell by 1.7 percent, with Belarus and Russia posting a drop of 1.8 and 2 percent, respectively, while Kyrgyzstan led the way with growth of 13.3 percent.

Agricultural production grew by 2.8 percent with Kazakhstan leading (+3.9 percent), followed by Belarus (+2.9 percent) and Russia (+2.7 percent).

The union’s construction sector grew by 10.7 percent, with Armenia posting the steepest rise of 53.1 percent, while Belarus was at the bottom with a 0.2-percent increase. Belarus also ranked the lowest in the transportation of goods and capital expenditures, posting a decrease of 33.6 and 19 percent, respectively.

Belarusian government projected a 3.8-percent economic growth for 2023 with inflation under eight percent. But its expectations seem unrealistic based on the results for the first two months.

The Eurasian Economic Union (EAEU) is an international organization for regional economic integration. Its member states include Belarus and Russia, which are under international sanctions for the assault on Ukraine, as well as Armenia, Kazakhstan and Kyrgyzstan. Cuba, Moldova, and Uzbekistan have observer status. Vietnam, Serbia, and Singapore have signed free trade agreements with the EAEU.