PMR Research is a specialised custom market research unit of PMR Ltd., a British-American company based in Poland. We offer a wide range of research services in Central and Eastern Europe for companies interested in business over the countries in the region.

Research services provided by PMR Research in Belarus include:

• brand and company image studies
• research on customer preferences, their satisfaction and their purchasing habits
• product concept tests
• usage & attitude studies
• internet surveys
• quantitative surveys - telephone, CATI, face-to-face
• qualitative research - focus groups, IDIs
• industry analyses (comprehensive analyses of given market sectors performed using PMR's proprietary methodology PMR MarketInsight)
• preparation of databases
• fieldwork services

Why to invest?

Growing on average by 8% per annum in the period between 2000 and 2008 Low employment cost Good location to start operations in Russia 10 million people domestic market Located between Western Europe and Russia Expertise in some industries

Belarus is a unusual mixture of the authoritarian state in which personal freedoms and human rights are very much limited, elections are far from free and opposition presidential candidates end up in labour camp after lost elections and the economy growing by 8% on average between 2000 and 2008, interesting industries with traditions ranging to the soviet times, low employment costs and location between Western Europe and Russia. The country has witnessed interesting investors opening joint ventures with local partners (usually state owned) such as Man partnership with the local trucks and construction equipment manufacturer Maz. Still operating within the command economy rules the country drifts towards a transitional form as more and more free market elements are seen across the country.

Business and economical environment

Belarus just like neighbouring Russia and Ukraine has a relatively high corporate income tax rate of 24%.

In 2007 the value of the Belarussian foreign trade in terms of exported goods reached EUR 17.72bn in current prices while the value of imports amounted EUR 20.9bn. The balance of international trade reached EUR -3.22bn. In 2008 the value of exports from the Belarus reached EUR 23.34bn and value of imports amounted at EUR 28.01bn. This again created a surplus of imports over resulting in the foreign trade balance valued at EUR - 4.67bn. The FDI (Foreign Direct Investments) in the Belarussian economy has amounted at EUR 1.53bn in 2008.

Inflation in the Belarus has reached a level of 12.1% in 2007 and the value for 2008 amounted the level of 13.3%. Corruption is one of the biggest problems of investing and operating in Belarus. Its perception in 2008 has been recorded by Transparency International at the level of 2 (CPI – Corruption Perception Index) and the country was ranked as 151st out of 180 surveyed, while the previous year has recorded CPI at 2.1 and rank of 150.

Belarus GDP has been constantly growing by average 8% per annum in the period between the 2000 and 2008. The growth has been fuelled by improving export climate both to Russia and the EU, increasing labour productivity, energy efficiency, state investment programmes, preferential financing of state supported sectors as well as by heavily subsidised sale of gas, crude oil and electricity by Russia. The latter has been especially important as country has very little deposits of fossil fuels and as much as 80% of its demand in this group of goods is satisfied by imports from Russia.

The industrial production in the 2007 has increased by 8.7% compared with the previous year. For the 2008 this parameter has reached 11%.

The unemployment rate in the Belarus has officially reached 1.6% in 2008. However, it must be emphasized that as the Belarussian state keeps to the policy of full employment typical for the command economies there is a big number of people who are employed but have very little incomes.

Within the most attractive sectors of the Belarussian economy the following might be mentioned:

• Automotive (heavy vehicles)
• Wood processing
• Chemical and petrochemical industry
• Machine building
• Logistics
• Communication and telecommunication
• Fuel and energy
• Agriculture
• Food production

The country has witnessed interesting investors opening joint ventures with local partners (usually state owned) such as Man partnership with the local trucks and construction equipment manufacturer Maz. Still operating within the command economy rules the country drifts towards a transitional form as more and more free market elements are seen across the country.

Social environment

The population of the Belarus as of 2008 has amounted to 9,67 mn inhabitants. The average age in 2007 has been recorded at 38.4, however, it differs for men and women reaching 35.4 for men and 41.3 for women. In the Belarussian society the number of women outnumbers men by 14%. In terms of nationalities the major groups are: Belarusian 81.2%, Russian 11.4%, Polish 3.9%, Ukrainian 2.4% and other 1.1%.

While education is concerned Belarus has a well developed infrastructure inherited from the Soviet times and in terms of tertiary education country has seven universities (general and technical) as well as a number of educational institutes. Despite of the Soviet Union past approx. 80% of the population declare themselves as Eastern Orthodox. In terms of salaries paid in the Belarus their average value was recorded at EUR 291 in 2008 what was a 23% increase compared with the 2007. In Q1 2009 the average salary stated in EUR amounted at EUR 251 what was partially a result of the BYR denomination by 20% in the beginning of 2009.

Infrastructure and technological environment

It must be emphasized that despite Soviet Union collapse in the 1991 the country is still operating within the command economy and keeps to the industries that have been developed there in the Soviet past either because of locally available resources (wood industry or aggregate mining) or have been located there because of the centrally made decision, e.g. specialisation in the manufacturing of trucks, construction machinery and heavy vehicles used in open pits. This has been very much allowed by the fact that Belarus kept close links with Russia and its economy.

The Belarusian electricity system being mostly gas fired has provides the country with approx. 85% of its electricity usage while the remaining 15% is imported from Russia, Ukraine and Lithuania. Belarus despite being a former Soviet republic has no nuclear power plant of its own, however, it benefits from excessive capacity of the Ukrainian units of this kind. The country is also important from the energy logistics point of view as it lies on the transit route of gas from Russia to the Western Europe. In future it is also foreseen that one of the solutions to Belarus lack of the renewable energy sources usage would be utilizing its huge wood stock for fuel wood.

Nearly 57% of Belarusians had access to the internet in December 2007 what was a huge achievement as in 2003 this ratio was 14%. Mobile telephony penetration reached 76% in 2007.

The transportation network of the Belarus consists of the 5,512 km of wide gauge railways and 70,000 km of paved roads. Through Belarus passes the transport corridor Berlin – Moscow out of which 606 km are located on the country territory and are covered by the dual carriageway resembling motorway in some parameters. There are 8 civilian airports in Belarus out of which only the one in Minsk is international.

Political environment

Belarus is an authoritarian state based on the mixture of the remnants of the Soviet Union member republic internal government system and the presidential system. Head of state is a president who appoints the prime minister. The bicameral parliament represents the legislative power but president may rule by decree of the same force as acts of parliament.

It must be emphasized that Belarus is a state in which personal freedoms and human rights of its inhabitants are very much limited. Suppress of the opposition, no freedom of press, gulag-like penitentiary system and elections which results are frequently dismissed by the independent observers are a real fact. However, the country has an evolving free market economy and society has access to independent view by internet or foreign media if only they wish so.

Country is a member of all major international organizations.

General data

Area: 207,600 sq km
Population: 9.67 mn (2008)
Capital city: Minsk
Language: Belarusian, Russian
Ethnic groups: Belarusian 81.2%, Russian 11.4%, Polish 3.9%, Ukrainian 2.4% and other 1.1%
Land boundaries: Latvia 171 km, Lithuania 680 km, Poland 605 km, Russia 959 km, Ukraine 891 km

Major economic indicators

	2006	2007	2008	2009f	2010f
GDP (EUR bn)	29.2	32.3	42.3	39
Population (mn)	9.71	9.69	9.67	9.57
GDP per capita (EUR)	3,001	3,385	4,230	4,075
GDP (constant prices y-o-y %)	10	8.6	10	1.5	2
Exports, real, y-o-y (%)	23	23	36
Imports, real, y-o-y (%)	32	28	38
CPI (average, y-o-y %)	6.6	12.1	13.3	11.5	12
Central bank reference rate	10	10	12	14
Monthly wage, nominal (EUR)	214	235	291	251
Unemployment rate (%)	1.3	1.1	1.6	1
Net FDI (EUR bn)		0.96	1.53
FDI % GDP		3	4
FX reserves (EUR bn)	1.2	3.3	2.47	2.52
Exchange rate to USD AVG	2,146	2,148	2,149	2,772
Exchange rate to EUR AVG	2,714	2,958	3,045	3,624

Last update: Q2 2009 

Useful data

Currency: BYR
Time zone: GMT +2
Area code: +375


If you would like to find out more on the Belarusian market opportunities please do not hesitate to contact us directly:
phone: (48 12) 618 90 80
faks (48 12) 618 90 08
e-mail: [email protected]

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Belarus market reports
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Belarus market research
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