The proportion of unprofitable organizations in Belarus has climbed to 19%
In a concerning development for the Belarusian economy, a recent analysis by the organization "Pazanki" reveals an increase in the number of unprofitable organizations across the country. The data shows that in the first five months of 2025, 18.7% of organizations (excluding small businesses) in Belarus were unprofitable, marking a significant increase of 4.1 percentage points compared to the same period in 2024 (14.6%).
The sharpest increase was observed in the Brest region, where the percentage of unprofitable organizations rose by 5.9 percentage points, bringing the total to 17.4%. The Minsk region followed closely, with an increase of 2.5 percentage points, resulting in a percentage of 18.0% of unprofitable organizations. The Mogilev region saw an increase of 2.3 percentage points, resulting in a percentage of 16.6%, while the Grodno region experienced an increase of 0.9 percentage points, with the percentage now at 16.3%. The Vitebsk region also reported an increase of 3.9 percentage points, bringing the percentage of unprofitable organizations to 14.2%.
The rise in unprofitability among Belarusian organizations is likely connected to worsening economic conditions impacting companies in the broader region. Economic challenges affecting enterprises include high debt burdens, rising loan interest rates, and falling revenues, as observed in Russia, where 62% of companies became unprofitable, with many under threat of bankruptcy. The debts of companies have increased by 65% since 2022, and some firms fail even to cover interest payments on their debts.
Belarus's economy is closely linked with Russia's, and similar pressures likely affect Belarusian companies, especially in industrial regions like Brest. This dependency means the broader economic downturn, rising costs, and financial stress seen in Russia likely spill over into Belarus. Additional stress on businesses in Belarus comes from structural and market challenges, such as supply chain disruptions and government interventions.
The Brest region, being industrially and logistically significant, is likely impacted strongly by these combined economic difficulties. The region faces reduced export competitiveness, higher input costs, rising debts, and tightening financial conditions. These factors contribute to the significant increase in the percentage of unprofitable organizations in the region.
While no direct Belarus government reports were found specifically explaining the Brest increase, the regional economic crisis context and comparisons with Russian economic conditions provide the most plausible explanation. The sharp rise in unprofitability among Belarusian organizations primarily stems from economic downturns characterized by high debt, elevated costs, restricted market conditions, and financial stress spreading through interconnected regional economies, especially Russia and Belarus.
The rise in unprofitable organizations in the Brest region, being industrially and logistically significant, suggests a strong impact from the combined economic difficulties faced by the region. This regional crisis is likely connected to the broader economic downturn, rising costs, and financial stress observed in Russia, particularly in industrial sectors like finance and business.
The data reveals that Belarusian organizations, particularly those in industrial regions like Brest, are experiencing financial strain due to factors such as high debt burdens, rising loan interest rates, and falling revenues, mirroring trends seen in the Russian finance and business industry.
