In 2019, the Belarusian authorities were trying to maintain an infirm balance between (1) the preservation of the economic model with a dominant role of state-run enterprises, (2) a comforting rate of output growth, and (3) macroeconomic and financial stability. No success was achieved, and one of the components had to be sacrificed. Price, external and fiscal stability remained. Output showed 1.2% growth. The outstripping rate of real income growth was ensured, which improved the situation in the social sector. However, all these measures factored in a decline in the corporate sector finances. In pursuit of a balance, the government relaxed budget constraints for the public sector. Private sector enterprises grabbed the opportunities opened by business environment improvements of the previous years, and made a significant contribution to output growth.
This policy paper was published in “Belarusian Yearbook – 2020”