Wage cuts and lay offs are unlikely to improve financial performance of Belarusian industry

According to the National Statistics Committee, in January 2016, industry’s net loss totalled BYR 15.5 billion, regardless of wage cuts to USD 328 and more lay-offs than hires by 2 787 people. The main reason for the losses was revaluation of foreign currency loans amid a decline in production volumes. Given the continued negative trend in the industry, further lay offs are on the way, more employees will work only a part-time, wages will fall below USD 300 and unprofitable enterprises will grow in number. Soon more than 40% of large and medium-sized enterprises may become unprofitable due to currency exchange differences, which will restrict their access to loans and deteriorate the situation with payments in the economy.