Belarus Does not Meet Investment Growth Forecast

As a source told Telegraf, the investments in fixed capital amounted to 113.5% in January-September 2009 against the corresponding period of 2008. In the first quarter of 2010 the investments did not reach the level of the corresponding period 2009 (97.6%), and for the first six months they made up 104.3%, and in the first nine months amounted to 109.5%, the Ministry of Economy says. 

During this period, construction and installation work were performed by at more than 18.6 trillion. rubles, which is by 14,6% more in comparable prices than in January-September 2009. 

The investment share in fixed capital in GDP amount reached 30.9% in January-September 2010.

The amount of agricultural products rose by 1.1% 

In January-September 2010, the amount of agricultural products of all the farm categories increased by 1.1% in comparison with the corresponding period 2009, while the growth forecast for 2010 was 10-11%. 

During this period agricultural products of the organizations, engaged in agricultural activities, and the households increased by 1.2% and 0.9% respectively. 

24.1% of total investments were spent on housing construction

Under the State investment program for 2010, approved by Presidential Decree № 636 of 17 December 2009, 520 objects are being built in the country, 238 of which, including the launch complexes, are planned to be put into operation. 

2138 billion rubles of national budget and 268.8 billion rubles of local budgets are planned to be spent for the implementation of the Public Investment Program for 2010. 

24.1% of total investments were spent on housing construction in January-September 2010.

In January-September 2010, 5078.9 thousand square meters of total area of residential buildings were implemented, representing 73% of the required assignment for a year. In comparison with January-September 2009 implementation of housing increased by 583 thousand square meters, or by 13%. 

3.3 million square meters of total area, including 2.46 million square meters in apartment buildings in urban areas were implemented for the citizens  registered in need of better housing conditions. The share of housing built for these people in apartment buildings in urban areas is 88.5% of the total amount of housing in such houses when the forecast for this year is 80% . 

In rural areas 1.3 million square meters of housing area were implemented, which accounted for 25.9% of its total input.  2.05 million square meters, or 114% compared to 2009 of housing were built in rural areas and small towns. 

Negative balance was 3.6 billion dollars in January-August

The results of foreign economic activity in January-August 2010 were characterized by the following indicators. 

According to the balance of payments methodology, the amount of foreign trade in goods and services at real prices amounted to 117.7% against January-August 2009 (the forecast growth rate for the year is 124-125%), including 119.3% of exports (127-128%) and import 116.3% (120-121%). 

In January-August 2010 foreign trade balance in goods and services was negative and amounted to 3.61 billion dollars (according to the forecast for 2010, the amount of the deficit is in the range of minus 4.6-4.7 billion). 

Exports of the goods, compared at real prices with January-August 2009 increased by 17.6% or 2.3 billion dollars, imports increased by 15% or 2.7 billion dollars. 

Cost values of foreign trade operations increased also in January-August 2010. This is due mainly to rising average prices for exported and imported goods. 

In comparison with January-August 2009, the average export prices went up by 19%, the average import prices increased by 12.6%. The physical amount of exports decreased by 1.2%, and the physical amount of imports rose by 2.1%. 

In January-August 2010 the negative balance of foreign trade was 5.01 billion dollars. The main source of foreign trade deficit in goods are export-import operations with intermediate goods (energy, raw materials and components). 

38.7% of the exports cost values fell on energy products and 45.3% of the imports cost values fell on intermediate goods. According to the National Bank of Belarus, services exports in January-August 2010 compared with January-August 2009 increased by 29.1%, import increased by 38.3%. 

Positive balance of trade in services amounted to 1.12 billion dollars. 

Income of population grew by 10.8% 

Real income (income adjusted for CPI) increased by 10,8% in January-August 2010 compared with the corresponding period of 2009 while the forecast growth for the year is by 14-15%. 

Money income per capita in January-August 2010 increased compared with January-August 2009 at real prices by 11%. Amount of average per capita income is 2 times more than the minimum consumption budget and 3.3 times more than the budget cost of living. 

In January-August 2010, nominal average monthly wage in the country increased by 17,4% compared to the corresponding period of 2009 and amounted to 1.14 million rubles (1,28 million rubles in August), nominal average monthly wage in budget area increased by 14,8% and amounted to 882.7 thousand rubles (947.8 thousand rubles in August). 

Real wages in January-August 2010 compared with January-August 2009 increased by 10% in August 2010 and decreased by 0.3% compared with July 2010. 

The unemployment rate was 0.8% 

According to the Ministry of Economy, in general the situation in the labor market remains to be controlled and managed, the registered unemployment rate is in the socially acceptable limits. It amounted to 0.8% of the economically active population on October 1, 2010. 

2.46 million pensioners were registered in the country in September 2010. The average size of their pensions was 530.3 thousand rubles. That is 2.2 times more than the subsistence minimum for pensioners. 

Average size of old-age pensions amounted to 555 thousand rubles, disability pensions — 483.4 thousand, survivor’s pensions — 325.6 thousand, social pensions — 205.9 thousand rubles. Real pensions (pensions, calculated taking into account changes in consumer prices for goods and services) increased by 23.9% in September 2010 compared with September 2009 and decreased by 1.6% compared with August 2010. 

Consumer price index amounted to 6.8% 

Retail trade turnover, including catering, increased in January-September 2010 by 16.2% compared to corresponding period in 2009, while growth forecast for 2010 is 14-15%. Starting with April 2010 annual forecast has been enforcing. 

The rate of growth of paid services was in January-August 2010 provided at the level of 108,5% in comparison with January-August 2009. The forecast for 2010 is 113-114%. 

Consumer Price Index for January-September 2010 amounted to 106.8% (forecast for 2010 is  108-110%) and did not exceed the estimated figure provided for the period. 

Profitability of the real sector was 10.1% 

In general, the profitability of sold products, works and services in January-August 2010 amounted to 10.1% against 10.6% in January-August 2009, respectively, return on sales was 6.3% against 6.5%.  Profitability of sold products, works and services amounted to 10.1% in January-July this year and 10.2% in August. 

Profitability of sold products, works and services of industrial enterprises in January-August 2010 amounted to 9.9%, which corresponded to the level of January-August 2009. Return on sales was 7.6% (7.4% in January-August 2009). Profitability of sold industrial products and services amounted to 10.1% in January-July this year and 9.1% in August.