15 November 2016

Belarus’ GDP 2.8% down in January-October

MINSK, 15 November (BelTA) – In January-October 2016 Belarus’ gross domestic product (GDP) dropped by 2.8% in comparison with the same period of last year, BelTA learned from Prime Minister of Belarus Andrei Kobyakov during the expanded-participation session of the Council of Ministers on 15 November.

The Prime Minister said: “Our GDP in January-October lags behind the relevant period of last year by 2.8%. Civil engineering, retail, and processing industry are still the primary factors that influence the overall result.”

Andrei Kobyakov stated that in January-September 2015 none of the regions managed to secure last year’s gross regional product results. “Brest Oblast (98.8%) and Grodno Oblast (97.9%) performed slightly better than others while Vitebsk Oblast (94.2%) did worst of all. And the gross added value in this oblast dropped across the board without an exception. On top of that I can also mention permanent problems with paying salaries on time in Vitebsk Oblast companies and organizations,” said Andrei Kobyakov.

According to the Prime Minister, Belarus’ export of merchandise and services shrank by 12.5% in January-September while export prices on the global market went down by 16%. “In natural terms Belarus’ merchandise export rose by 0.4%. Belarus also increased the export of investment goods and consumer non-foods in cost terms by 9.8% and 15.7% respectively,” stated the Belarusian head of government.

Andrei Kobyakov remarked that Belarus increased the export of machines and equipment, transport vehicles, and textile goods. “Good merchandise export figures were secured by the Architecture and Construction Ministry, the light industry concern Bellegprom, the administrations of Grodno Oblast and Mogilev Oblast. The export of services by organizations of the Healthcare Ministry, the city of Minsk, and the Brest Oblast administration was way above the target,” said Andrei Kobyakov.

The Prime Minister also pointed out that without taking into account oil, oil products, and potash the rest of the national economy improved the balance of foreign trade in goods and services by $1.03 billion in January-September 2016 in comparison with the same period of last year. In his words, continued trends on the domestic currency market help keep the country’s foreign trade balanced.

Andrei Kobyakov stated that in October 2016 the ratio of the stock in storage against the average monthly output rose by 3.7 percentage points. “While the figure rose, it is still absolutely comfortable for the economy. The figure was lower than last year. The stock in storage was increased primarily by enterprises of the Belarusian state food industry concern Belgospishcheprom as they stocked up on sugar due to seasonal factors. The stock in storage decreased in all the other ministries and concerns,” noted the Belarusian head of government.

Andrei Kobyakov reminded that presidential decree No. 78 requires reducing the prime cost of products. He said that the goal was not achieved in January-September 2016. “The prime cost of sold products rose by 10.5% in the nine-month period,” he said.

As of 1 October 2016 the number of loss-making companies was 13% up from 1 October 2015. However, their net loss was 40% lower while net loss per company was nearly halved and stood at Br1 million against Br1.8 million in 2015. On the whole, Belarusian companies secured a net profit as high as Br3.7 billion, 18% up from 1 October 2015, summed up Andrei Kobyakov.

BELARUSIAN NEWS