with Russia - by far its largest single trade partner - decreased in
2007, largely as a result of a change in the way the Value Added Tax
(VAT) on trade was collected. Russia has introduced an export duty
on oil shipped to Belarus, which will increase gradually through
2009, and a requirement that Belarusian duties on re-exported
Russian oil be shared with Russia - 80% will go to Russia in 2008,
and 85% in 2009. Russia also increased Belarusian natural gas prices
from $47 per thousand cubic meters (tcm) to $100 per tcm in 2007,
and plans to increase prices gradually to world levels by 2011.
Russia's recent policy of bringing energy prices for Belarus to
world market levels may result in a slowdown in economic growth in
Belarus over the next few years. Some policy measures, including
tightening of fiscal and monetary policies, improving energy
efficiency, and diversifying exports, have been introduced, but
external borrowing has been the main mechanism used to manage the
growing pressures on the economy.

Belgium
This modern, private-enterprise economy has capitalized on
its central geographic location, highly developed transport network,
and diversified industrial and commercial base. Industry is
concentrated mainly in the populous Flemish area in the north. With
few natural resources, Belgium must import substantial quantities of
raw materials and export a large volume of manufactures, making its
economy unusually dependent on the state of world markets. Roughly
three-quarters of its trade is with other EU countries. Public debt
is more than 85% of GDP. On the positive side, the government has
succeeded in balancing its budget, and income distribution is
relatively equal. Belgium began circulating the euro currency in
January 2002. Economic growth in 2001-03 dropped sharply because of
the global economic slowdown, with moderate recovery in 2004-07.
Economic growth and foreign direct investment are expected to slow
down in 2008, due to credit tightening, falling consumer and
business confidence, and above average inflation. However, with the
successful negotiation of the 2008 budget and devolution of power
within the government, political tensions seem to be easing and
could lead to an improvement in the economic outlook for 2008.

Belize
In this small, essentially private-enterprise economy,
tourism is the number one foreign exchange earner fol