Belarusian economy's collapse: Only inflation rate and inventories grow

Belarus demonstrates a decline in all main directions of the social and economic development.

According to the official data released by the National Statistical Committee, Belarus's GDP decreased 3.3% in the fist half of the year, though the forecast was a 0.2-0.7% growth. GDP of the Vitsebsk region declined 6.3%, Radio Svaboda reports.

Labour productivity fell 1.5%, though it was expected to grow 1.5-2%.

The export of Belarusian goods and services was to fall 3.6-4%, but it slid 25.9%.

The inflation rate was 7.3% in the first half of the year with the forecast of not more than 12%.

Prices of fruit grew 47.9%, potato – 44.9%, butter – 25%, fish and seafood – 20.3%. Utility costs rose 19.9% since the beginning of the year.

Industrial production fell 7.4% in the first six months of the year. Prices of industrial goods rose 10.3%, and prices in wholesale increased 25.7%.

Finished goods inventories make 77.1% of the average monthly industrial production. The same rate in Minsk reached 133.5%.

The most difficult situation with stocks is recorded in the following industries:

– The inventories in the automotive and machine industry make 247.4% of the average monthly production output (23.5% of the country's total amount of finished goods);

– in the textile and garment sector – 262.1%;

– in the wood-processing industry – 173.3%;

– in the pharmaceutical industry – 152.7%.

The total debt of manufacturing enterprises grew 20.3% since the beginning of the year, including the loan debts growth of 22%.

Belarus's export to the EU exceeded the export to Russia for the first time (36.5% and 36.3% in January-May respectively). The export to Russia declined 3.6%, and export to the EU increased 3.7% in the past year.

The import from Russia grew from 55.9% to 58.3%, while the import from the EU fell from 23.1% to 18.7%.

Belarus's main trade partners in January-May 2015 were Russia (47.8% of the total volume of trade), the UK (7.8%), Ukraine (5.3%), China (4.8%), Germany (4.3%), Poland (3.4%), Lithuania (2.2%), the Netherlands (1.9%), Brazil (1.4%), Italy (1.3%).