Belarus’ Economy Ministry reported on economic effect of regional investments

The economic effect of regional investments is measured not only in money, but also in the growth of production volumes and product quality. As noted by the Economy Ministry, the so-called direct effect of the implementation of investment projects includes the reduced costs and increased profits.

Primary changes (indirect effect) also affect adjacent sectors of the economy or related activities. Thus, the expansion of an enterprise leads to an increase in orders for raw materials or supplier services, which will contribute to their growth and development. The social effect is also very important: i.e. the creation of new jobs. Increasing the level of local employment makes it possible to offer people a decent alternative to moving to large cities, and this is especially relevant in the localities most remote from the capital and regional centres. Individual projects also produce a significant environmental effect: the production of a liquid reagent (AdBlue) – that can reduce the content of nitrogen oxides in the exhaust gases of Euro-4, Euro-5, Euro-6 diesel engines by 90 percent – has been established at a large chemical production facility in Grodno.

The implementation of import-substituting projects is currently among the locomotives of the Belarusian economy. By reducing dependence on imports, the country increases the added value of its products and enhances their competitiveness. For example, the production of carbon black (necessary for production of tires, rubber products, plastics, polymers, artificial fibres) created at a Mogilev enterprise will make it possible to gradually replace supplies from Russia and China with its products. As noted by the Economy Ministry, last year alone, the volume of production in physical terms exceeded 40 thousand tonnes.