Economy - overview:
Belarus has seen limited structural reform since 1995, when President LUKASHENKO launched the country on the path of "market socialism." In keeping with this policy, LUKASHENKO reimposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene in the management of private enterprises. Since 2005, the government has re-nationalized a number of private companies. In addition, businesses have been subjected to pressure by central and local governments, including arbitrary changes in regulations, numerous rigorous inspections, retroactive application of new business regulations, and arrests of "disruptive" businessmen and factory owners. Continued state control over economic operations hampers market entry for businesses, both domestic and foreign. Government statistics indicate GDP growth was strong, reaching 10% in 2008, despite the roadblocks of a tough, centrally directed economy with a high rate of inflation. However, the global crisis pushed the country into recession in 2009. Slumping foreign demand hit the industrial sector hard. Minsk has depended on a standby-agreement with the IMF to assist with balance of payments shortfalls. In line with IMF conditions, in early 2009, Belarus devalued the ruble approximately 20% and tightened some fiscal and monetary policies. Nevertheless, Belarus probably will miss its 2009 budget targets with a deficit of about 2% of GDP. During 2009 Minsk and Moscow agreed to keep prices for oil and natural gas at 2009 levels. On 1 January 2010, Russia, Kazakhstan and Belarus launched a customs union, with unified trade regulations and customs codes still under negotiation.

GDP (purchasing power parity):
$111.9 billion (2009 est.)