Belarusian economy adapting to sanctions – think tank

May 23, BPN. Belarusian economy may be adapting to sanctions as gross domestic product (GDP) rose by four percent in April year on year and by some 0.9 percent against March 2023, says the recent analysis by the BEROC think tank.

The analysts linked the GDP increase to trade which grew 15.5 percent year on year in April, including an increase in exports of potash, vehicles and, possibly, re-export of goods to Russia through Belarus.

At the same time, the April GDP “still fell short of the 2019 monthly average,” BEROC noted. 

Increased consumer demand along with a loose monetary policy contributed to the growth of retail trade, the report said.

Growing wages stimulate demand but shrinking employment offsets this effect, the analysts noted. Industrial production has also slowed down from 10.6 percent in March to 4.9 percent in April. 

Belarusian government projects a 3.8-percent economic growth for 2023.