1998 Russian financial crisis
Externally, exports to Russia, which was more than 60 percent of total exports, fell during the second half of 1998 by 10 percent. Demand for Belarusian products was weak through 1999, showing signs of recovery only during the final quarter, with the revival of economic activity in Russia. Also, in the first quarter of 1999, compared to 1998, except for investments, all budget expenditures were smaller. The biggest cuts were made in national security (a 1.9 GDP, compared to 2.5 percent in the first quarter of 1998) and social policy (1.5 and 2.4 percent of GDP, respectively) where expenditures were lowered almost by one third.