{"id":156685,"date":"2025-09-23T12:43:50","date_gmt":"2025-09-23T09:43:50","guid":{"rendered":"https:\/\/pozirk.online\/en\/news\/156685\/"},"modified":"2026-03-09T20:10:49","modified_gmt":"2026-03-09T20:10:49","slug":"low-output-undermines-capex-effectiveness-think-tank","status":"publish","type":"articles","link":"https:\/\/pozirk.online\/en\/news\/156685\/","title":{"rendered":"Low output undermines CAPEX effectiveness \u2013 think tank"},"content":{"rendered":"\n

September 23, Pozirk.<\/em><\/strong> Belarus has seen paltry output growth despite a sharp rise in capital expenditures. This casts doubt on the efficiency of its CAPEX strategy, says a recent analysis by the BEROC think tank.<\/p>\n\n\n\n

Maintaining a high level of production and exports requires an increase in productivity, including through the renewal of physical capital amid increased competition on the Russian market, experts noted.<\/p>\n\n\n\n

CAPEX primarily comes from companies\u2019 own funds and the state budget, while corporate lending has grown only modestly in recent months despite low real interest rates, BEROC said.<\/p>\n\n\n\n

The central bank may increase incentives for banks to lend to companies, given the significant lag in GDP growth compared to the government’s forecast, the analysts noted.<\/p>\n\n\n\n

Last month, Belarus’ GDP rose by some 3.6 percent year on year driven by growth in agricultural production. With seasonal adjustments, the economy recovered in August to March-May levels after a temporary decline in June-July, the analysis said.<\/p>\n\n\n\n

Excluding the contribution of agriculture, the experts estimated economic growth in August at about 0.1 percent year on year, following 0.1 percent in July and 0.6 percent in June.<\/p>\n\n\n\n

GDP growth was constrained by the softening of export-oriented sectors, including manufacturing, wholesale trade and cargo transportation, exacerbated by declining demand in the Russian market and labor shortages, according to BEROC.<\/p>\n\n\n\n

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