GDP of Belarus will stop falling only when economic situation in Russia improves

According to the National Statistics Committee, in January-May 2015 Belarus’ GDP declined by 3%. Russia’s economy has declined at almost the same rate – 3.2%, which has demonstrated the direct dependence of the Belarusian economy on recession in Russia. The Belarusian economy has declined due to a decrease in industrial production and amid falling sales on the Russian market. This negative trend will persist. As a result, the nominal growth rates of wages would lag behind schedule (except in the public sector), investment programmes might be reduced or postponed to a later period, layoffs at industrial enterprises would continue in both the public and private sectors. The Belarusian economy links its hopes for improvement with the possible increase in oil prices, as well as with the lifting of sanctions against Russia, which will lead to increased investment activity on the Russian market and a corresponding increase in demand for Belarusian products.