flation-which increased from an average monthly rate of
2.8% in 1996 to 4.4% in 1997-however, have kept enterprises from
making much needed capital investments. As a result, infrastructure
and equipment stocks have continued to deteriorate. Belarus has seen
little structural reform since 1995, when LUKASHENKO launched the
country on the path of "market socialism." Privatization of
enterprises controlled by the central government virtually ceased in
1996. As of May 1997, only about 10% of all enterprises under central
government control had been privatized. In addition, LUKASHENKO has
re-imposed administrative control over prices and the national
currency's exchange rate, and expanded the state's right to intervene
arbitrarily in the management of private enterprise. Lack of
structural reform, and a climate hostile to business, have inhibited
foreign investment in Belarus in 1995-97. In 1995 Belarus ranked
second to last among the 15 former Soviet republics in terms of the
average amount of foreign investment it attracted per capita. Although
it moved up to 11th place in 1996, this was largely due to inflows
from Russia related to the construction of the Yamal natural gas
pipeline. Belarus's trade deficit has grown steadily over the past
three years - from 8% of total trade turnover in 1995 to 14% in the
first quarter of 1997 - despite the government's efforts to promote
exports and limit imports. Given Belarus's limited fiscal reserve, a
continued growth in the trade deficit will increase vulnerability to a
balance of payments crisis.

GDP: purchasing power parity-$50.4 billion (1997 est.)

GDP-real growth rate: 8.5% (1997 est.)

GDP-per capita: purchasing power parity-$4,800 (1997 est.)

GDP-composition by sector:
agriculture: 20%
industry: 43%
services: 37% (1997 est.)

Inflation rate-consumer price index: 65% (1997 est.)

Labor force:
total: 4.3 million
by occupation: industry and construction 40%, agriculture and forestry
19%, services 41% (1997 est.)

Unemployment rate: 3.3% officially registered unemployed (July 1997);
large numbers of underemployed workers

Budget:
revenues: $4 billion
expenditures: $4.1 billion, including capital expenditures of $180
million (1997 est.)

Industries: tractors, metal-cutting machine tools, off-highway dump
trucks up to 110-metric-ton load capacity, wheel-type earth movers for
construction and mining, eight-wheel-drive, high-flotation trucks with
cargo capacity of