Capital flees from Belarus

• 31.05.2012, 9:27

In Q1 2012 the net outflow of foreign capital was more than $1 billion.

The net outflow of foreign capital from Belarus was $1124.2 mln (minus 8.8% of the GDP) as compared to inflow of $1667.7 mln (12% of the GDP) in January – March 2011.

It is stated in the analytical survey of the National Bank of Belarus “Main trends in the economy and money and credit sphere of Belarus in January – April 2012”.

“Capital outflow was mostly caused by decrease of liabilities on business credits for a sum of $1035.3 mln and outflow of money from bank sector, $418.3 mln,” the report reads.

At the same time, direct investments to the economy of the country were $420.6 mln in Q1 2012. They decreased by 38.9% as compared to January-March 2011.