Belarus Pharmaceutical & Healthcare Industries Overview 2017 & Forecast to 2017-2019

REPORT SUMMARY

The Overview uncovers economic, pharmaceutical and healthcare insights in a tailored made systematic and business styled manner.

Report name:	Pharmaceutical and Healthcare Industries Overview 2017
Country:	Belarus
Data years:	2011-1HY 2017
Forecast for:	2017-2019
Price:	EUR 500
Contents:	Download contents
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This report is intended for decision makers, industry professionals, and other stakeholders globally.

The report covers a 2016 full year data with the forecast of the economics and pharmaceutical market growth to 2017-2019.

BELARUS ECONOMICS SUMMARY

2001-2015

This article is based on the "Belarus Pharmaceutical and Healthcare Industries Overview 2017" report developed by UPharma Consulting and contains short excerpts from this report The full report is available for purchase now.

The Republic of Belarus is the 83rd economy in the world by nominal GDP (US $ 45.3 Bn in 2016). With GDP per capita amounting US $ 5,143 (93rd in the world in 2016). Belarus described as authoritarian country, as Alexander Lukashenko rules the state since 1994 and controls main levers of power. After its independence, the country chose a path of “market socialism”, meaning the government was to take control over prices and currency exchange rates.

Despite a well-developed industrial base inherited from the USSR, Belarus industry and agriculture failed to become competitive. However, in 2000’s due to the burst of oil prices and preferences for oil imports obtained from Russia, Belarus’ GDP was growing 8.3% annually (2001-2008). After 2008 the World economic crisis, Belarus economy started suffering from chronic disturbances followed by inflation increase and budget deficit. In 2011, with the CPI amounted 109%, while the National currency (Belarus Ruble) depreciated from 3,010/US $ at the year beginning to 8,470/US $ at the year-end.

In 2014, the economy was affected by the economic decline in Russia and fall in the world oil prices. Having, weak diplomatic relations with the US and the EU (sanctions against President Lukashenko and other key figures in the government introduced in 2010 and lifted in 2015), Belarus primarily relies on Russia when demanding external financial aid. In 2014, Belarus received US $ 2 Bn loans from Russia but continued to struggle under the high external debt, trade deficit and ruble devaluation. In 2014, Belarus joined dominated by Russia Eurasian Economic Union (EEU).

In 2015, after 19 years of active growth, Belarus economy fell by 3.9% y-o-y due to contraction in all the key sectors caused by weak demand on domestic and foreign markets. The year has revealed the country’s high dependence on the economic situation in Russia and a huge need for structural reforms.

2016

In 2016, domestic demand remained suppressed, and final consumption fell dramatically, while further cuts in directed lending and public capital expenditures continued to dampen gross fixed investments. As the same time, the relations with Moscow started worsening. Russia refused the liberal policy and shifted to a utilitarian calculation of incomes and expenses. After a price gas dispute crude oil supplies from Russia downed by 21%.

On Jan 2016, the authorities abolished price controls on socially important goods and services and eliminated volume output targets for SOEs. Basic household tariffs for water supply and wastewater treatment were increased by 85%. On Jul 1, 2016, the National Bank of Belarus conducted denomination of the national currency by replacement of old banknotes with the newer ones in the ratio of 1: 10,000. Meanwhile, the World Bank projects Belarus’ GDP to decline by 0.4% in 2017, followed by modest growth of 0.7% in 2018 and 1.2% in 2019.

PHARMACEUTICAL MARKET OF BELARUS

Despite Ukraine and Russia, Belarus had not inherited important industrial facilities in pharmaceutical sphere after the USSR collapse. At the beginning of the 1990s, the country had few small plants in Minsk and Barysaw. The full version of the report is available for purchase now. Considering social orientation of the Belarus economy, the development the pharmaceutical industry was primarily controlled by the state.

The local pharmaceutical market has been experiencing harsh reorganisation since 2014-2015 when a severe crisis hit the country on all fronts. The total market value has decreased by almost 20% since then. The government is striving to reallocate the public procurement of pharmaceuticals to locally manufactured products instead of importing them. The total market in 2016 sagged both, in volumes (-2.4%), and in values (-1.4%) in US $ compared with 2015. Reduction n the size of the pharmaceutical market in physical terms has been a trend for the last three years – from 2014 to 2016.

It is evident that the market demonstrates the same development trend as the whole country’s economy: stagnation, the decline in consumption and lack of visible signs of impetuous recovery. However, we expect the local market to return to insignificant growth in the mid-term (2-3 years perspective) due to overall country’s economic external and internal stabilisation and normalisation of domestic demand.

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Source: UPharma Consulting