High Consumer Demand Driven by Real Cash Incomes of Belarusians
OREANDA-NEWS. Results of the social and economic development of Belarus in January-September 2007 will be considered at a session of the Council of Ministers on October 23. The session will be chaired by Prime Minister of Belarus Sergei Sidorsky, reported the Official website www.government.by.
In January-September 2007, 13 out of 19 major social and economic development targets were hit. Over the period the agricultural output grew by 5,6% while the annual target stands at 6-7,5%, consumer goods output - 7,3% (8,5-9,5%), with the production of foods up by 2% (9-10%). The profitability of sold products in the industry reached 12,9% over the eight months while the forecast is pegged to 14,5%. In January-August the import of merchandise and services went up 24,8% while it was supposed to be restrained to 8,5-9,5%. As a result, the foreign trade deficit amounted to $1,311.5 million.
Meanwhile, analysis of the fulfilment of the most important targets shows that economic development pace is quite high at present. In January-September 2007, the GDP swelled by 8,4%. The rise is attributed to significant growth rates of investment demand, construction, and the development of industries: chemical and petrochemical industries, mechanical engineering, construction materials. The high consumer demand is propped by well-growing real cash incomes of individuals - 16,2% up in January-August.
The total volume of foreign investments in the Belarusian economy (without banks) has grown quite significantly. In H1 2007 foreign investments amounted to $2,3 billion while in the same period of last year the figure stood at $1 billion. Foreign direct investment reached $511 million, 55.5% up on the same period of 2006.
Over the first eight months of the year the number of unprofitable companies shrank to 12% or 1,404 unprofitable companies (15% of the total in the same period of last year).
In January-September 2007, the inflation growth stayed within the designated range. The foreign exchange market stayed stable.
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