Production of goods within Belarus has decreased
In the first half of 2021, Belarus faced a decline in industrial production, marking the first such downturn in recent years. This decline was particularly evident in the Vitebsk, Gomel, and Grodno regions.
The "Processing Industry" and "Water Supply; Waste Management Services" sectors in Belarus saw a decline, while the "Mining Industry" and "Electricity, Gas, Steam and Air Conditioning Supply" sectors continued to grow. The production volume in the Grodno region decreased by 1.5%, and the Vitebsk region saw a 2.9% drop, while the Gomel region experienced a 2.6% decrease in the January-July period.
Several factors contribute to this decline. The economic slowdown in Russia, Belarus’s key trading partner, has reduced external demand for Belarusian industrial products. Russia’s GDP contracted by 4% in early 2021, and its manufacturing sector declined sharply due to weak demand and financial difficulties.
Sanctions and financial constraints also continue to pressure Belarusian industry, as Western sanctions remain in place. This situation has led to sustained challenges in production and exports. Additionally, decreased domestic demand and rising inflation have further diminished incentives and capacity for industrial growth.
In contrast, the Minsk region and Minsk city experienced an increase in industrial output. The production volume in Minsk city increased by 1.2%, and the Minsk region saw a significant 3.2% increase. The Brest region also saw a 1% increase in production volume. The "Electricity, Gas, Steam and Air Conditioning Supply" sector in Belarus increased by 1.6%, and the "Mining Industry" sector showed a growth of 2.8%.
However, no information was provided about the other sectors in the mentioned regions' industrial production for the January-July period of 2021. Similarly, no information was available about the overall industrial production in Belarus for the same period compared to the same period in 2024. The volume of industrial production in current prices was 119.3 billion rubles, which is 99.7% of the same period in 2024.
In conclusion, Belarus's industrial decline in these regions in 2021 stems from deteriorating external market conditions, especially in Russia, ongoing Western sanctions, financial hardships, and weakening domestic demand, which have led to the first industrial production downturn in these areas in years.
Read also:
- Deepwater Port Construction Permits for Projects within the South Central Region's Air Regulations
- Citizen Thekla Walker, Minister, urges: "Let's face our responsibilities at home"
- Editorial Correspondence: Justifying the Elimination of a Program Earmarked for Reducing Our Own Carbon Footprint?
- Investment of $20 million in an eco-friendly ammonia production facility in Africa by SA-H2 fund
