Belarus: Economy contracts at record low pace in Q1
June 19, 2015
In Q1, the economy declined 2.3% over the same quarter last year, according to data released by the National Statistical Committee on 19 June. The reading represented a multi-year low and mostly reflected a sharp deterioration in domestic demand, which more than offset an improvement in the external sector’s contribution.
Private consumption fell 0.5% in annual terms in Q1, which contrasted the 2.8% increase observed in Q4 and represented the largest decline since Q2 2012. Government spending contracted 2.0% over the same quarter last year (Q4: -0.1% year-on-year). Conversely, gross fixed capital formation fall moderated from minus 3.9% in Q4 to minus 3.1% in Q1.
On the external side of the economy, the net contribution from the external sector rebounded from minus 3.8 percentage points in Q4 to plus 0.3 percentage points in Q1.