OREANDA-NEWS. July 29, 2008. The growth of the international trade deficit of Belarus has substantially slowed down, First Deputy Prime Minister of Belarus Vladimir Semashko said at the session of the Council of Ministers of Belarus, reported the Official website www.government.by.

The session was dedicated to the socio-economic development of the country in January-June 2008. “In April, the deficit rose by USD400 million, in May only by USD 214 million,” he said. In January-May 2008, the trade deficit of Belarus totalled USD 840.5 million.

The international trade during this period grew by 56.2%, the exports rising 58.4% and the imports 54.1%.

Vladimir Semashko noted that in 2008, the government plans to reduce the deficit of the international trade in goods and services to USD 1.4 billion. Additional measures have been introduced to fulfill this task; in particular, the projected growth of exports was set as 20%. The Industry Ministry, the Agriculture Ministry and Belneftekhim concern have been informed about the changes in the projected indices.

Moreover, the growth of foreign investment in Belarus in H1 made up 280% as against the same period last year, though their share in the total investment remains low (1.4%). In January-June 2008 capital investment amounted to USD 233.4 million, First Deputy Prime Minister of Belarus Vladimir Semashko said.

In January-June capital investment increased 23.9% over H1 007. In H1 the investment in the non-production outperformed the investment in the real production sector. That was due to the increased activity of small and medium-scaled private business, liberalization of the economy. At the same time such investments are not injected into the material production sector. For example, out of the USD 617.5 millions of direct foreign investment in H1, some USD 282.4 million, or 45.7%, was funneled into the general commercial activity (audit services, marketing research, lease).

Vladimir Semashko criticized the Industry Ministry, concerns Belneftekhim, Bellesbumprom, Bellegprom, Belgospischeprom, Belbiopharm for lagging behind the capital investment targets. Region-wise, it is the city of Minsk that is not reaching the target. The First Vice-Premier believes that the main reason is the weak preparedness of the government bodies for the implementationsof investment projects.

By and large, 750 large investment projects worth of Br4.7 trillion were pursued in H1.

High profitability of Belarusian enterprises will help maintain the stability of the national economy in the conditions of rising energy prices. In January-May 2008, the profitability of the domestic products and services was 17.8% while the projected figure was 13%.

“The prices for the Russian energy sources for 2009 have not been finalized yet. If the economic outlook is rather gloomy, the profitability of our enterprises will be a kind of buffer that will help our economy withstand skyrocketed energy prices,” Vladimir Semashko underlined.

In January-May this year the number of loss-making companies was down 41.3% over the same period last year, First Deputy Prime Minister of Belarus Vladimir Semashko said.

According to him, there are 960 underperforming companies in the country as against 1,686 in January-May 2007. Thus, their share has reduced to 9%.

Vladimir Semashko also said that the financial state of the real production sector has been improving. “In January-May sales profits were up 40%, net profits more than 80%, those in the manufacturing industry 2.2 times,” he said.

In December 2008, the average monthly salary in Belarus should amount to Br966 thousand or \\$460. The salaries in the budget sector should average Br903 thousand or USD 430, First Deputy Prime Minister of Belarus Vladimir Semashko said.

The President of Belarus commissioned the government with the task to substantially increase the average monthly salaries of the population by 2010. In order to fulfill this task, in 2008 the salaries should rise by 25.9% to reach Br883 thousand. The procedures of raising salaries pursued by all the governmental bodies, oblast executive committees and the Minsk City Council were revised.

In H1 2008, the nominal average monthly salary in Belarus was equal to Br817.3 thousand which is 23.8% up from the same period of 2007. In June the salaries reached Br892.4 thousand or USD 418.8, the salary of employees of industrial enterprises being USD 469.7, construction companies - USD 553.3, transport - USD 474.6, communications - USD 454.

In H1 2008, the average monthly salary of employees of state-run enterprises rose by 14.8% to reach Br684.5 thousand, in June it was equal to Br744 thousand or USD 349.1.

The actual earnings of Belarusians rose by 8.4% during this time.

Vladimir Semashko noted that in H1 2008, the intersectorial differentiation in salaries fell, while the purchasing capacity keeps rising.

In H1 2008, the growth of labour productivity exceeds the growth of the real salaries by 1.8 percentage points.

In H1 potash fertilizer export revenues were up almost 2.5 times, Vladimir Semashko said at a session of the Council of Ministers on July 29.

According to him, the prices for potash fertilisers rose up significantly this year. “In H1 the export price averaged USD 405.2 per tonne as against USD 167.7 in the same period last year,” Vladimir Semashko said. As a result, export revenues in January-June this year reached USD 1.458 billion (USD 585 million in H1 2007). “The surplus in trade in this commodity increased by USD 872 million,” Vladimir Semashko said.

Belarus has resumed export of its oil this year. In January-May the country exported 568.8 thousand tonnes of oil to the tune of USD 425 million. Exports of tractors increased by USD 196.5 million, trucks by USD 96.6 million. Exports of food and other goods have grown, too.

“By pursuing an active export policy we have managed to compensate in most part for the negative effect of the energy price growth,” Vladimir Semashko said. According to him, the total cost of imported oil and oil products (taking into account the growth of prices and physical volumes of import) was up 2.2 times in January-May.