Foreign Trade of Belarus in 2011

Foreign Trade in Goods

(according to the foreign trade statistics method)

Foreign trade in goods amounted to US$ 86 billion in 2011 and compared to 2010 increased by 43 percent (25.8 billion).

Results of exports in 2011 show the strengthening of the positive trends of the last months.

By the end of the 2011 was resolved the problem of slower exports growth rate when compared to imports. While in January imports growth rate was 40.9 percent higher than growth rate of exports, in January-February the difference was 31.8 percent, in January-March— 16.7 percent, in January-April— 1.9 percent. In January-May the exports growth rate surpassed the imports growth by 8.8 percent. In January-June this the difference was 13 percent, in January-July— 18.5, in January-August— 21.6, in January-September— 25, in January-October— 25.5, in January-November— 28.7, and at the end of the year 2011 the exports growth rate was 28.3 percent higher than imports growth rate.

1. Exports

Exports of goods amounted to 40.3 billion and increased in 2011 by 15 billion or by 59 .4 percent.

Exports grew dramatically in the fourth quarter 2011. In December, 2011 the highest volume of monthly exports was achieved— 3.8 billion.

Exports by month
(US$, millions)

Major growth was recorded in exports of crude oil and oil products (2-fold), solvents and thinners (10-fold), potash (1.5-fold), tractors and truck tractors (1.8-fold), trucks (1.7-fold), iron and steel (by 29.1 percent), tires (by 36.7 percent), nitrogen fertilizers ( 2.2-fold).

Exports in 2011 by Commodity Groups
(as % of the total)

Region-wise the exports in 2011 grew compared to 2011 by 43 percent to CIS countries, of them to Russia by 37.5 percent, to other CIS states – by 58 percent. Exports to non-CIS states, including the EU grew by 206.9 percent.

Exports of goods by countries
(US$, millions)

The increase of exports to EU countries amounted to 8.1 billion, to Russia – 3.7 billion, to other CIS countries— 2 billion. There is a notable trend of export growth to other regions: to Asian and African countries – by 756.20 million, to the countries of the Southern America— by 539.1 million.

In 2011 the main importers of Belarusian products were Russia – 34 percent of total exports, the Netherlands – 15.3 percent, Ukraine – 10.3 percent, Latvia – 7.8 percent, Germany – 4.5 percent, Brazil – 3 percent, Poland – 2.8 percent, Lithuania – 2.1 percent, China – 1.6 percent, Kazakhstan – 1.6 percent.

2. Imports

Imports in 2011 amounted to US $ 45.7 billion and increased by 31.1 percent or by 10.8 billion.

Imports in 2011 by Commodity Groups
(as % of the total)

The largest increase was recorded in imports of intermediate goods, such as raw materials, components and energy products. Nine commodity groups accounted for 83.3 percent (9 billion) of the total increase: crude oil and oil products (import rose by 5.2 billion), natural gas (by 1.3 million), raw materials and chemical products (623, 9 million), steel and iron (435.3 million), electrical energy (216.5 million), raw sugar (118.7 million), reciprocating internal combustion engine (116.7 million), mineral fertilizers (70,4 million), resin elastic(56 million).

Import of consumer goods amounted to 1.4 billion and grew by 25.2 percent, of which non-food goods imports rose by 1.3 billion (by 35 percent) and foodstuffs – by 104,6 million(by 5.6 percent).

The imports of passenger vehicles accounted for 99.5 percent (1.3 billion) of the growth in non-food consumer goods.

Import of technological equipment, machinery and tools grew by 500,4 million (by 14.4 percent).

In 2011, major suppliers of import included Russia – 54.5 percent of total imports, Germany – 5.6 percent, Ukraine – 4.4 percent, China – 4.8 percent, Venezuela – 2.5 percent, Poland – 2.8 percent, Italy – 2.1 percent, United States – 1.2 percent, France – 0.9 percent.

3. Balance of Trade

The negative balance of foreign trade in goods in 2011 amounted to US$ 5.5 billion. Compared to 2010 the negative balance decreased by US$ 4.1 billion.

The balance is negative in all the aggregated commodity groups excluding investment goods and foodstuffs.

Balance of Trade by the Commodity Groups, 2010-2011
(US$, millions)

The positive balance in investment goods improved by US$ 1.1 billion, in foodstuffs – by US$ 463.6 million.

There was a decrease of the negative balance in energy resources (by US$ 580.8 million) and in other intermediate goods (by US$ 2.7 billion).

The negative balance increased only in non-food consumer products (by US$ 504.5 million).

Foreign Trade in Services

(according to the balance of payments method)

1. Export

Export of services totaled US$ 5,3 billion, and have increased in 2011 by US$ 760 million or by 16.9 percent, which is 3.1 percent lower than the approved target rate for 2011.

The transport services contributed 70 percent (US$ 532.2 million) to the growth of exports.

Exports grew in all of the service categories except for insurance services:

• construction services – 55.4 percent increase (US$ 69.5 million);
  
• computer services — 25.3 percent (US$ 55 million);
  
• business services – 10.3 percent (US$ 47.7 million);
  
• communication services – 6.3 percent (US$ 10.9 million);
  
• travel — by 5.1 percent (US$ 22.5 million);
  
• royalties and license fees – 2.4 times (US$ 11.5 million);
  
• financial services –38.4 percent (US$ 4.3 million);
  
• medical services – by 47.2 percent (US$ 4.2 million);
  
• information services – by 20.8 percent (US$ 1.1 million);
  
• public services – by 6.1 percent (US$ 2.1 million).

Export of insurance services decreased by 35 percent (US$ 0.7 million) due to reduced volumes of voluntary insurance.

2. Import

Import of services increased in 2011 by 10.6 percent or by US$ 304.6 million and amounted to US$ 3.2 billion.

The major increase in imports was in construction (49.2 percent of the total increase of imports, or by US$ 149.9 million), and transport (by 46 percent or by US$ 140 million). Significant contribution into growth of imports was also made by business services (growth by 17.9 percent or by US$ 60.9 million) and financial services (by 27.8 percent or by US$ 21.2 million).

Complex situation on the foreign exchange market helped to reduce imports in the categories of travel – by 9.3 percent or by US$ 56.6 million, royalties and license fees — by 11.7 percent or by US$ 12 million, information services – by 27.3 percent or by US$ 2.1 million, and public services – by 20.3 percent or by US$ 1.4 million.

Structure of Foreign Trade in Services in 2011

3. Trade Balance

The positive trade balance in services in 2011 totaled US$ 2.1 billion, which is 100.9 percent from the estimated figure.

Compared to 2010 the positive balance increased by US$ 455.3 million due to the increase in transport (US$ 392.2 million) and computer services (US$ 55.2 million) and due to the decrease in the negative balance in royalties and license fees (US$ 23.5 million) and travel (US$ 79.1 million).

At the same time there is a considerable growth of the negative balance in construction (US$ 80.4 million), financial (US$ 16.8 million) and business services (US$ 13.2 million).

Foreign Trade in Goods and Services

(according to the balance of payments method)

Export of goods and services in 2011 amounted to US$ 41.6 billion and increased by US$ 16.2 billion, compared to 2010. As a result of rigid monetary and fiscal policy exports of goods and services grew by 154.2 percent while estimated growth was at 123.7 percent.

Import of goods and services increased in 2011 year-to-year by 29.3 percent or by US$ 10.9 million and totaled 48.3 billion. Thus the country managed to redirect the shipments of goods from home to foreign markets and to slow down a considerable increase in imports.

The negative balance of trade in goods and services totaled US$ 2.18 billion, which makes 38.2 percent of the estimated level (US$ 5.7 billion).

Compared to 2010 the negative balance improved by US$ 5.27 billion due to the decrease in the negative balance of trade in goods by US$ 4.8 billion and the increase in the positive balance of trade in services by US$ 0.46 billion. Thus the trade in services offset the trade balance deficit by 48.9 percent.