Minsk is facing serious economic challenges due to a sharp decline in exports within the Eurasian Economic Union. Overproduction and the loss of traditional markets among allies and partners have led to economic stagnation. In the first half of 2025, industrial growth amounted to only 0.3%, significantly lower than the 1% recorded a month earlier. Industrial production has effectively come to a halt: the manufacturing sector shows minimal growth at 0.1%, while agriculture has declined by 8%.
Positive dynamics are ensured only by domestic investment and construction. Capital investment increased by 14%, and the volume of new housing rose by 9.5%. However, these factors do not offset the overall economic downturn.
Against this backdrop, Lukashenko is seeking ways to cover debt obligations, which will reach $14 billion over the next three years. Among the measures under consideration are cuts to social programs and an active search for new markets.
It is worth noting that Russia, Belarus’s key partner in the EAEU, has also reduced budget spending, slashing nearly $2 billion from social programs.
