Belarusian retail trade to stagnate soon

In Q1 2015, retail turnover in Belarus increased by 1.3%. However, as of April 2015, a downward trend is observed (retail turnover declined by 0.4% compared with April 2014). Amid falling real incomes of the population, further fall in trade should be anticipated, leading to a negative impact on GDP by Q3 and Q4 2015. Financial indicators of the industry might deteriorate, prompting the authorities to strengthen sanctions against trade enterprises for late payments to suppliers. Commercial chain retailers would have to increase the share of domestic products in order to prevent sanctions by the regulator. In addition, some enterprises might suspend their activity. The fight against consumer imports might have a negative impact on the range of goods sold by retailers.