BELARUS MAINTAINS ECONOMIC GROWTH IN JANUARY-FEBRUARY

In January-February 2007 Belarus reported robust economic performance in production and investment spheres having met 13 out of 19 socio-economic targets for the year, told of the economy ministry.

GDP grew by 9% from January-February 2006 while the target figures ranged between 8% and 9% and were 6.5% for H1. The GDP energy-intensity was reduced by 24.7% in January (the target was 6-7%).

The production increase in January-February 2007 was 6.9% from the same period last year (the targets were 7.5-8.5% for this period and 5% for H1 2007). Consumer goods production upped by 6%, that of food climbed by 11.2%, down 0.3% from January-February 2006 (the target was 9-10%). Labour productivity in the manufacturing industry grew by 7.1%.

As for the performance of the real economy sector, by and large domestic economic entities reported a 11.5% improvement in product profitability in January 2007. The product profitability in the manufacturing industry was 12.1%.

The manufacturing industry managed to reduce material intensity by 6.1% in comparable prices, far above the projected 0.7%, the press-service asserted.

Agricultural production in January-February 2007 upped by 5.2% from the same period last year, the target being 6-7.5% and 2% for H1). Agricultural companies and privately-owned farms reported a 7.9% growth as against the planned 3%. The agricultural production generated by personal subsidiary farms fell by 6.2%, the main impediment being the reduction in the number of cattle.

Capital investments in January-February 2007 went up by 33.7% from the same period in 2006, the target being 14.5-17%. Capital investments with regard to manufacturing enterprises surged by 34.6%. The share of investments in production in the total volume of investments in January-February 2007 made up 63.4%.

In January-February 2007, 20.9% of total investments was utilized in housing construction, or 30.7% up from the same period last year. Over the two months 585 thousand square meters of housing was sent in service, including 321 thousand square meters in rural areas. This is 36.9% up from January-February 2006.

The economy ministry has also cited foreign trade figures. Under the payment balance method, in January foreign trade in goods and services grew by 14.9% on January 2006 (the 2007 projections - 10.8%-12%), including export – by 1.5% (the projections - 13.2%-14.5%), imports – by 29.3% (8.5%-9.5%). In January the current trade deficit came to $288,6 million (the projections provide for the foreign trade surplus to the tune of $500-600 million).

In January 2007, real money incomes of people (adjusted to the Consumer Prices Index) ramped up by 17.4% over January 2006 (the forecast for 2007 – 7.5%-8.5%).

As of March 1 the unemployed rate was 1.2% of the total people in prime working years (the forecast – 1.5%-1.8%). According to preliminary data, in January 2007 the number of the employed people made up 4367.9 thousand people, what is below the 2007 target of 4375-4448 thousand people.

The consumer market kept on growing in January-February. The retail trade including public catering picked up by 21.1% from the same period last year 2006 (the 2007 projections – 9.5%-10.5%). In January 2007 paid services to the population went up by 13% on January 2006, what is above the target.

In January-February this year the consumer price index edged up by 2.6%, or 1.3% a month while the 2007 forecast is 0.5%-0.6%. The growth comes on the back of a seasonal factor (higher inflation at the beginning of the year than in summer or autumn) and new macroeconomic environment attributed to the energy price hike, the economy ministry says.

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