Belarus: Economy plummets in Q2
October 2, 2015
In Q2, the economy contracted a notable 4.5% over the same quarter last year, according to data released by the National Statistical Committee on 2 October (Q1: -2.1 year-on-year). 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 in Q2 fell 3.0% in annual terms, which was a more pronounced contraction from Q1’s 0.5% fall. Gross fixed capital formation plummeted 23.1%, which was a significant deterioration from Q1’s 3.1% contraction and marked a multi-year low. In contrast, government spending rebounded in the second quarter, swinging from a 2.0% contraction in Q1 to a mild 0.1% expansion.
On the external side of the economy, exports expanded 2.2%, which was an improvement from the first quarter’s 1.1% increase. However, imports shrunk 10.9% in the second quarter, a more pronounced contraction from the first quarter’s 8.0% fall. As a result, the net contribution from the external sector improved from plus 0.3 percentage points in Q1 to plus 7.4 percentage points in Q2.