NEWS

Government of Belarus focusing on the five-month economic performance

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 $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.

Meeting with State Secretary of the Union State Pavel Borodin

The information that Belarus sells dried milk at antidumping prices in Russia is not true, Prime Minister of Belarus Sergei Sidorsky said at a meeting with State Secretary of the Union State Pavel Borodin.

“I was surprised to hear the statement of Deputy Head of the Russian government Viktor Zubkov that Belarus continues selling dried milk at antidumping prices. In a personal conversation with Viktor Zubkov and in a relevant letter I said that Belarus can sell this product which is in short supply today at any market. What we have now is an antidumping investigation launched by Viktor Zubkov,” Sergei Sidorsky said.

According to Sergei Sidorsky, Belarus has received several requests from Russia to sell dried milk at lower prices, in accordance with the intergovernmental agreement, in order to support the social sphere. All other types of milk are sold via the exchange, Sergei Sidorsky said.

Sergei Sidorsky intends to discuss this issue in the Russian government. The Prime Minister of Belarus added that this situation reminds him “the second sugar problem”.

The Union State budget for 2009 is estimated at over RUB5.5 billion, Secretary of State of the Union State Pavel Borodin told media on June 24.

Pavel Borodin said, the formation of the Union State’s draft budget bill for 2009 and other topical issues relating to the Belarusian-Russian trade and economic cooperation were discussed during his meeting with Prime Minister of Russia Vladimir Putin on June 23 prior to the forthcoming session of the Union State Council of Ministers in Moscow on June 27. Contributions of Belarus and Russia to the 2009 budget are supposed to be increased by 25%. RUB523 million left from the 2008 budget will be transferred to the next year’s budget revenues.

All in all, 32 manufacturing programmes are financed by the Union State budget at present, with applications for 84 programmes filed for 2009.

The forthcoming session of the Union Cabinet is also supposed to consider performance of collegial bodies of the Union State. According to Pavel Borodin, performance of joint boards of the Justice Ministries, Defence Ministries, Foreign Ministries, and Interior Ministries deserves praise while boards of the Finance Ministries, Economy Ministries, Industry Ministries, Agriculture Ministries, and Transport Ministries virtually do not operate.

The agenda of the forthcoming session of the Union Cabinet includes cooperation in transport, customs, pricing policy issues, cooperation in agricultural products trade.

Apart from that, the State Secretary of the Union State believes it is necessary to ensure the participation of representatives of the Union State Permanent Committee in Union State meetings.

“We also need the third programme for diesel automobile engineering, we need Euro-5-compliant, and Euro-6-compliant engines,” he said.

Apart from that, Pavel Borodin believes it is necessary to ratify the Union State property agreement.

According to Pavel Borodin, at present 28,000 enterprises with 5 million jobs operate within the framework of the Union State.

Belarusian-Chinese scientific and technical cooperation improves competitive ability of both countries

Belarusian-Chinese scientific and technical cooperation contributes to improving the competitive ability of both the countries, First Vice Premier of Belarus Vladimir Semashko said in Minsk on June 24 at the opening of an exhibition timed to China Science Days in Belarus.

Scientific and technical cooperation between Belarus and China has been successfully developed since 1992. Over the time it has grown precise. At present scientists jointly work on projects in industry, agriculture, new materials, biotechnologies, chemistry. “Our specialists are united by common interests. Their cooperation brings tangible results, which contribute to raising the competitive ability of our economies,” said Vladimir Semashko.

He believes, scientific and technical cooperation would not have been so successful without friendly and trusting relations, which have been established between the two countries over the recent years. “China is a rapidly developing country with a rich scientific potential we can learn from,” stressed the official.

In turn, Deputy Science and Technology Minister of China Cao Jianlin added, scientific cooperation between Belarus and China ensures more rapid assimilation of high technologies and scientific achievements in manufacturing industries. The promotion of Belarusian and Chinese research results is spurred by joint scientific and technological centres as well as the Belarusian-Chinese industrial park. “Though our countries are separated by distance, our friendship and close economic relations develop steadily and bring high results,” said Cao Jianlin.

He noted, due to the recent earthquake in China the expo features fewer exhibits than it was planned. “However, we hope that it will not influence the establishment of new scientific and business contacts between the two countries,” added Cao Jianlin. “We are also genuinely grateful to Belarus and the Belarusian nation for aid given to us at a hard time”.

Timed to the China Science and Technology Days in Belarus, the expo features over 120 scientific achievements. The exposition includes scientific achievements of Chinese scientists, researches done as part of Belarusian-Chinese joint programmes and projects. Visitors will be able to get familiar with scientific researches into new materials, biotechnologies, electronics, optoelectronics, ecology, transport, resource-saving technologies.

The event is organised by the State Science and Technology Committee of Belarus and the Chinese Science and Technology Ministry. The Chinese delegation is led by Deputy Science and Technology Minister Cao Jianlin.

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