Why the Success of the Union State Frustrates Opponents - Insights from "Simple Economy"

The intensifying contradictions in the global economy present a choice: either to foster a civilian sector, peace, and order, or to survive through warfare. Belarus and Russia, through the Union State, exemplify alternative paths of development—ones free from conflicts and wars.

In a climate of escalating economic rivalry, only strong alliances rooted in ideas of creation, peacebuilding, and the enhancement of citizens' well-being can thrive. The recent high-level meeting between the leaders of Russia and Belarus in Moscow clearly demonstrated to the world that the Union State fosters confidence in a stable future through robust economic strength and security.

This, of course, irritates our opponents. They would prefer to see us weak and impoverished. However, we are strong and steadfastly pursuing our own path.

Over the past 25 years, Belarus’s nominal GDP has increased more than sixfold, while Russia's has expanded tenfold. GDP per capita in Belarus has risen nearly seven times, and in Russia—eleven times. Trade turnover has increased sevenfold and is projected to reach about $60 billion in 2024.

The Integration of Growth: The Union State as a Guarantee of Peace and Prosperity

This year, strong momentum persists. In January-February 2025, Belarus's GDP grew by over 3% (3.1%). The volume of industrial production during the same period increased to 102% compared to the previous year.

In January 2025, the profitability of sold products and services reached over 7% (7.2%), while sales profitability was at 6%. The population's confidence in the economy remains high, evidenced by a retail turnover growth rate of 110% in January-February 2025, amounting to 14.3 billion Belarusian rubles.

Real disposable income for the citizens of Belarus in January 2025 soared to nearly 114% (113.8%) compared to January 2024. Thanks to the success of the Union State, Belarus's economic debt burden is also diminishing. The gross external debt decreased by over $1.5 billion (specifically $1.6 billion) in 2024.

A Stark Contrast with Europe

While the Union State progresses, Europe grapples with the instability of the global economy and the very sanctions it has imposed. For instance, the technology conglomerate Siemens announced the layoff of 6,000 workers, half of whom are in Germany. The automotive manufacturer Audi plans to cut 7,500 jobs in Germany by 2029. Meanwhile, Volkswagen intends to downsize by a total of 35,000 positions over the next five years, with thousands more in automotive component supply chains.

These measures reflect corporations’ responses to declining demand and profitability within the civilian automotive sector. Bloomberg reports that many small and medium-sized enterprises in Europe, facing losses in civilian automotive orders, are highly interested in securing contracts with European defense corporations to tap into the hundreds of billions of euros allocated to defense by European governments.

The war economy poses a bankruptcy threat, driving companies towards the defense sector. Germany has relaxed its state debt limits to increase defense spending, while the European Union plans to allocate a total of 800 billion euros for military purposes by 2025. NATO Secretary-General Mark Rutte has urged European nations to raise defense spending to 3.5% of GDP.

As we can see, the Union State develops on the ideals of peace and creation, while Europe prepares for war, dismantling its automotive industry and civilian sectors. As they say, "observe the difference!"