The economic policy in 2006-2010

In the history of economic development of the Republic of Belarus 2006-2010 is a period of active economic growth. It was based on the rapid development of the domestic market and increasing investment through foreign loans.

GDP in five years increased by 42.1%, industrial production - by 47.8%, agricultural production - by 24.8%. Belarus reached a leading position among the CIS countries in the production of major agricultural products per capita. Belarusian agro-industrial complex has not only fully ensured food security of the country, but also exported significant volumes of food.

The level and quality of life have been consistently increasing. During 2006-2010 real disposable incomes of Belarusians increased by 79.1%.

At the same time, in 2009 the country suffered from the global financial crisis and for that reason there was a slowdown in economic growth.

The sharp weakening of economic activity in the world has created significant challenges for the Belarusian economy. Export prices fell, demand for our products decreased, delays in the paymentsbecame more frequent, access to credit markets – more difficult and to resources – more expensive.

In terms of world economic crisis, the high level of openness of the Belarusian economy and strategic dependence on imports of energy and commodities have initially put our economy in a vulnerable position.

The Ministry of Economy had to develop from the scratch vital documents for the domestic economy.

All work on the transformation of the legal framework and the creation of new regulatory tools of social and economic development was aimed to minimize the effects of external factors, adapt the economy to new conditions and reduce the vulnerability to external shocks in the future.

Geographical expansion of the crisis and the escalation of the global financial and economic crisis led to a decision on improvement of the business climate in the country to create more favorable conditions for the enterprises of all forms of ownership in order to improve their competitiveness in conditions of toughened competition during the shrinkage of external markets.

The Ministry of Economy developed a plan of priority measures for the liberalization of economic activities, which included promotion of business activity, development of entrepreneurship, activation of the investment process and solution of other problems which had great negative impact on the business climate and development.

This approach has found its’ reflection in the Directive of President of December 31, 2010 №4 "On the development of entrepreneurship and stimulating business activity in the Republic of Belarus".

Furthermore, some additional measures were introduced in order to put the economy on the path of innovative development, stimulate domestic developers and manufacturers to the creation and introduction of new high-tech products based on the results of scientific research, experimental design (technology) works.

The impact of decrease of global demand was the most severe in regard to the real economy. This caused permanent development of measures aimed to support certain organizations, maintain their positions both on foreign and domestic markets. With that in mind, the Ministry of Economy together with the National Bank developed measures to ensure the stable operation of the GDP-forming and other organizations of the real sector of the economy.