Gap between high and low-wage Belarusian regions will increase
According to the National Statistics Committee, in October 2015, while nominal wages reduced by BYR 25,400 on average throughout the country, in 10 lowest paid regions – by BYR 155,700.
In regions with higher wages, wages fall slower due to the presence of highly profitable companies with a sustainable market niche. The overall decline in wages in Belarus will continue. The Vitebsk and Mogilev regions may face a rapid decline in retail turnover, a rise in unemployment, and a higher number of bankruptcies among state-owned enterprises. Amid fewer employment opportunities on foreign markets, domestic labour competition will increase, leading to costs reduction by enterprises thanks to wage cuts and, hence, better competitiveness of some domestic products on foreign markets.
In regions with higher wages, wages fall slower due to the presence of highly profitable companies with a sustainable market niche. The overall decline in wages in Belarus will continue. The Vitebsk and Mogilev regions may face a rapid decline in retail turnover, a rise in unemployment, and a higher number of bankruptcies among state-owned enterprises. Amid fewer employment opportunities on foreign markets, domestic labour competition will increase, leading to costs reduction by enterprises thanks to wage cuts and, hence, better competitiveness of some domestic products on foreign markets.