Economy

The Belarusian economy remains mostly state-controlled, as it has been since Soviet times. Over half of the businesses are state controlled and foreign ownership is under 4 percent. The country is relatively stable, economically, but depends to a large extent on raw material supplies, such as oil, from its close ally Russia. Industry and agriculture remain largely in state hands. Belarus is therefore one of the very few state-capitalistic national economies remaining.

Agriculture is dominated by collective farming, with the major sub-sectors the cultivation of potatoes and cattle breeding. Historically important branches of industry include textiles and wood processing. After 1965, creation of heavy industry and mechanical engineering (tractors, refrigerators) significantly strengthened the country's development.

Economically, Belarus engages itself in the Commonwealth of Independent States, Eurasian Economic Community and Union with Russia. After 1990, with the introduction of free market structures into the former Soviet Union, industrial production plunged. Economic growth returned in 1996 and in 2001 Belarus was first of CIS countries to reach 1990 levels of industrial production and agricultural production, however the Belarusian economy is heavily subsidized by Moscow in exchange for political submission and the suppression of a Belarusian national revival. Gross domestic product (GDP) for 2005 was $79.13 billion (estimate), which equates to an annual income of approximately $7,700 dollar per head. In 2005, GDP increased by about 8-9%, with the inflation rate averaging about 8%. According to the UN, average monthly income grew from US$20 to US$225 during the last 10 years.

Labour Force

Over four million people comprise the labour force in Belarus, with the females holding slightly more jobs than males. In 2005, nearly a quarter of the population were employed in industrial factories. Agriculture, manufacturing sales, trading goods and education are other sectors where employment is high. The unemployment rate, according to Belarusian government statistics, was about 1.6% in 2005. The number of unemployed persons totalled 679,000 with approximately two-thirds being women. The rate of unemployment has been decreasing since 2003; the overall rate has been lower since statistics were first taken in 1995.

Currency

The currency of Belarus is the Belarusian ruble (BYR). The currency was introduced in May of 1992, replacing the Soviet ruble. As part of the Union of Russia and Belarus, there has been discussion between both states to use a single currency along the same lines as the Euro. This has led to the suggestion for the Belarusin ruble to be discontinued in favour of the Russian ruble (RUB). The banking system of Belarus comprises with thirty state owned banks and one privatized bank.