Page 62 - Eastern Europe Outlook 2020

3.0 ​Real economy
Telecoms and IT made the largest contribution to GDP growth in 2019​ and accounted for half of the 1.1% growth in the first nine months of 2019. The average wage in these sectors remains well above all other sectors, almost three times higher than the country average, partially due to the tax relief applied to Minsk’s highly successful high tech industrial park.
Despite its rather stodgy image, Belarus is home to a number of successful industries in addition to tech, including the MAZ heavy mining truck maker, and also makes legendary tractors and fridges.
Short of natural resources, the one mineral the republic has is potash, which is mined and sold by the Belaruskali (Belarusian Potash Company), which is a major contributor to the budget.
Exports declined by 3.6% in 2019, repercussions of temporary interruptions in oil sector. Apart from that Belaruskali significantly reduced the production of fertilisers in September and October. This was officially because of maintenance works but in reality, there are no new Chinese contracts, and it has offered a discount for Indian buyers for 2020.
On the other hand, the IT sector is rapidly developing (20-30% y/y) and accounted for half of GDP increase, already contributing about 6% to GDP. One of the country’s big successes was to set up an IT park and it has emerged as a major producer of software solutions.
Other sectors are starting to become more sophisticated with organised retail being one of the more notable. The economy is driven by
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