Belarusian Economic Research and Outreach Center

FREE Policy Brief: Intermediate and Capital Goods Import and Economic Growth in Belarus

This policy brief presents estimation results of the influence of intermediate and capital goods (ICGs) imports on GDP growth taking into account changes in the exchange rate. The Belarusian economy substantially relies on ICGs imports, and my research indicates that imports of intermediate inputs negatively contribute to Belarus’ economic growth. The findings suggest that a devaluation of national currency can negatively influence both GDP growth and imports of intermediate goods. The negative influence on GDP growth is caused by a lower price competitiveness of the export sector, and the negative influence on imports of intermediate goods is due to a significant increase in the costs of imports.