Economic performance during first two months of 2014 has been rather disappointing. First, almost all industries reduced their output which led to a decline in GDP by 1.6% year-on-year in January-February.  Second, Belarus has faced new challenges on foreign markets, which are a consequence of capital outflows and weakening growth in Russia.

Belarus is often treated as ‘terra incognita’ even among its neighbors. Indeed, the development path of the country is severely distinct from other CEE countries. In terms of long-term growth, majority of transition countries during the last decade fell back upon the growth of TFP (total factor productivity, i.e. technology and efficiency) being accompanied with reasonable growth of capital. Belarus, in turn, secured its growth almost entirely due to accumulation of capital, while productivity gains were extremely poor, especially in tradable sector.

According to official forecasts, an improved climate for foreign trade and accelerated economic growth await Belarus in 2014. The growth of the country's negative trade balance in 2013 created additional pressure on the foreign exchange market and the dynamics of its foreign reserves.

A ceremony of awarding certificates and diplomas to the participants of the Third Student School on Modern Economics and Economic Research was held at the British Embassy in Minsk on February 3, 2014.

FREE Policy Brief "Macroeconomic Performance and Preferences for Democracy" written by Maryia Akulava was published in FREE Policy Briefs Series.