OREANDA-NEWS. June 24, 2008. Inflation in Belarus is under control, Prime Minister of Belarus Sergei Sidorsky said at a session of the Council of Ministers on June 24. “There are good prerequisites to keep inflation within the projected levels”, he noted. In January-May 2008, the price consumer index was up 6.6% what meets the 2008 inflation target. A total of 252 innovation projects will be implemented in Belarus by the end of 2008, Prime Minister of Belarus Sergei Sidorsky said.

According to him, since the beginning of the year forty projects have been completed. Sergei Sidorsky reminded the participants of the session that some innovation projects will be launched ahead of the scheduled, namely in 2008-2009. The government has adjusted the national innovation programme. It now includes 844 projects, 173 of them are aimed at creating new productions; more than 270 at modernisation.

Belarus is in the middle of the five-year plan. “Now we can assess real achievements for the past two and a half years, to tap deeper into the resources and potential of the country,” the Prime Minister said. According to him, the main targets of the socio-economic development programme 2006-2010 are being met. The groundwork has been laid for its further implementation.

For the past five months GDP was up 10.4% as against 8.6% in the same period last year. Industrial production was up 13%, value added 31.8%. “This is a good showing,” Sergei Sidorsky said.

According to him, the consumer price index is under control of the government. In June inflation is expected at 0.5%. Belarus attracted Br10 trillion worth of capital investment, up 22.5%. More than 60% of investment was channeled into economic reforms.

Sergei Sidorsky also took note of growing incomes in the country. Real wages amounted to Br791,000, or USD 370 in equivalent.

“You should set up new enterprises, and if necessary, you should buy licensed factories”, Prime Minister of Belarus Sergei Sidorsky said on June 24. He added that these measures are necessary to attract investment and secure sustainable economic development. “If it is not done right now, it will be a greater challenge later,” Sergei Sidorsky said.

According to him, it is crucial that the investment growth rate should be kept at 125% both in the production and non-production areas.

Giving a general assessment of the performance of the domestic economy over the last 5 months, Sergei Sidorsky criticized the Bellegprom concern where the stockpiles are accumulating. “No progress is observed here,” the Premier stated.

Sergei Sidorsky also had some questions to the Ministry of Architecture and Construction. At present, the growth rate of the housing construction is 117%, though in 2007, it was almost two times higher. The Belarusian Premier called upon to examine all the existing issues objectively and give them a timely response.

Most important targets of the socio-economic development forecast of Belarus in H1 2008 will be met, Economy Minister Nikolai Zaichenko said at a session of the Council of Ministers on June 24.

In H1 2008, GDP will be up 10.3%. In January-May the labour productivity will be up 9.6%, which is above the target of 8.8%. Profitability of sold products in industry will increase by 17.3%, well above the 13% target.

In January-June capital investment will be up 23%; retail trade 20% (the target was 13%). The commissioning of new housing will be 2.6 millions square meters, a half of the annual plan.

The targets in agriculture production, growth of real earnings and chargeable services will not be achieved. A foreign trade deficit will be \\$835 million.

According to Nikolai Zaichenko, this is the objective reflection of the state of national economy. The results attest to a high rate of economic growth and are the good basis for successful work in H2.

In H1 inflation in Belarus will not exceed 7.4%, Economy Minister says
According to preliminary estimates, in H1 inflation will not exceed 7.4%, Economy Minister Nikolai Zaichenko said at a session of the Council of Ministers on June 24 focusing on the five-month economic performance.

According to him, in January-May inflation was 6.6%. In Russia the rate of inflation is 7.7%, in Ukraine 14.6%. Inflation increased driven up by higher energy prices. A rise in services tariffs and meat and dairy prices accounted for 60% of the rise of inflation. Seasonal price growth for fruits and vegetables also contributed to the growth.

Additional measures have been taken this year to restrain inflation. In May the government introduced a system of measures to restrain growth of prices for fruits and vegetables. In June the Economy Ministry took a decision to adopt ceiling trade mark-ups on essential foods and wholesale mark-ups on foods from abroad. The measures of state regulation in price formation will be taken in the future.

Prime Minister Sergei Sidorsky noted that in June inflation remains at the rate of 0.5%. This instills confidence that inflation will remain within the projected levels in 2008.

In January-April 2008 profitability of Belaruskali totalled 160.7%, that of Belorusneft — 57.9%. Thanks to the excellent performance the profitability of Belneftekhim concern amounted to 31.4%, Economy Minister of Belarus Nikolai Zaichenko told a session of the Council of Ministers on June 24.

Over the four months the industry’s profitability of sold products and services totalled 17.4% while the annual target is pegged at 12.6%. According to the Economy Minister, all ministries and concerns, except for the Agriculture and Food Ministry and the State Defence Industries Committee, managed to reach the forecast level. The Industry Ministry’s profitability reached 18.8%. This year the figure grew every month.

The share of low profitability enterprises in the industry decreased from 35.9% in January-April 2007 to 29.1% in January-April 2008. Respectively the share of companies with medium and high profitability increased. Nikolai Zaichenko underscored, the share of low profitability enterprises is high in the Agriculture and Food Ministry, the Trade Ministry and the Belarusian Union of Consumers’ Cooperatives.