Posted:
21.08.2024 10:47:57
Dynamics of steady development
GDP growth and rising household incomes — how the Belarusian economy is operating in current conditions
In October 2023, the President of Belarus approved crucial forecast parameters for the country’s development in 2024. The major aim is to ensure economic stability and enhance the welfare of the population. The GDP is projected to grow by 3.8 percent, while inflation is expected not to exceed 6 percent. Preliminary results for the first half of the year indicate that there are ample conditions to meet these targets. Andrei Kartun, First Deputy Minister of Economy, has spoken about the development of the Belarusian economy and the reserves available for its further growth.
Joint Belarusian-Chinese BelGee CJSC, automobile production under Geely brand, Borisov Meeting the target
— How did the economy perform in January to June? Which sectors have driven growth?
Andrei Kartun, First DeputyMinister of Economy
— It is necessary to highlight that the economy as a whole is operating quite steadily. According to the results of the first half of the year, four out of five forecast indicators were met, significantly ahead of the plan. Thus, from January to June, GDP growth reached 105 percent, exceeding both the forecast and the global average. The primary drivers of this growth are industry, agriculture, trade, and construction. Industry undoubtedly remains the engine of the economy, showing a growth rate of 7.1 percent from January to June 2024.
Agriculture is also performing well, with growth exceeding 10 percent. The construction sector maintains a high pace with a growth rate of 108.8 percent. Positive trends prevail in trade as well, with retail turnover rising by 11.5 percent over January — June 2024 and wholesale turnover up by 7.8 percent.
It is noteworthy that products from the real sector of the economy are in high demand. Compared to the same period last year, the ratio of stock reserves to the average monthly production volume has decreased by 8.9 percent. This is facilitated by increased sales on external markets, with an export growth rate of 104.2 percent from January to June 2024.
Belarus is dynamically expanding its presence on the markets of far arc countries, significantly building up sales to Asian countries by 16.6 percent and to Africa by 3.7 times. Enterprises are planning their development with growing confidence, while investments in fixed capital rose by 7.6 percent in the first half of the year. Along with that, expenditure on acquiring machinery and equipment grew by more than 14 percent. The effective functioning of the economy enables a high wage level — on average, Br2,270 in June 2024.
Zapadno-Dvinsky MRS JSC, Vitebsk. After-sales service technician Artur Shakun
Amkodor-Pinsk JSC production, Brest Region, Pinsk 
BELAZ JSC — Management Company of BELAZ-HOLDING, Minsk Region, Zhodino
— To achieve the anticipated growth rate of 103.8 percent this year, it is necessary to ramp up production and export volumes, enhance domestic demand, and elevate real disposable income levels among the population.
Under the Comprehensive Measures for the Protection of the Domestic Market for 2023-2025, initiatives are being implemented to promote Belarusian products, shape a positive image of national brands, and protect the internal market.
As is known, since the start of 2024, Belarusbank has been offering attractive consumer loans for the purchase of domestic goods, including furniture, household appliances, motorcycle and bicycle products, and other goods in demand by our citizens.
Foreign trade remains a key priority for our open economy. In 2023, despite sanctions, record levels were achieved on certain indicators. The export of goods was the highest in the last 11 years, with supplies to Russia and China reaching historic highs. At the same time, Belarus continues to diversify its exports of goods and services, stepping up its presence on the markets of far arc countries and establishing new trade and economic connections, as well as new logistical chains.
The Head of State has set an ambitious task to increase export by 7.6 percent this year. To this end, new entities in industry-specific commodity distribution network will be established in the Chinese market, the Eurasian Economic Union (EAEU) and other friendly countries.
Income growth
— The increase in household income is one of the priorities of government policy. What measures are taken to achieve this?— From January to May of the current year, the real disposable income of the population rose by 9.6 percent. For the period of January to June 2024, the real growth of retirement pensions reached 110.9 percent. By the end of June, real wages increased by 11.2 percent.
The rise in the minimum subsistence budget has positively affected the size of supplements and additional payments to pensions, as well as benefits for families with children.
It is anticipated that household income will continue to grow this year. The basic rate for state-funded organisations has been raised to Br250, marking a 9 percent increase as compared to 2023. Salaries for teachers are set to increase by no less than 16 percent in nominal terms, while additional incentive payments for medical professionals, social workers, and cultural employees will also rise.Given the projected economic growth rates for this year, we expect that real disposable incomes of the population will grow by at least 3.5 percent by the end of 2024.
Technological response
Gefest-Tekhnika Unitary Enterprise, Brest. Gas stoves
Battery factory 1AK-Battery Alliance LLC, Brest Region. Production of rechargeable batteries
Territory of Iskra-Vetka agricultural enterprise, Gomel Region, Vetka District. Triticale harvest
In microelectronics, our countries have agreed a development roadmap involving the production of over 80 types of electronic components for use in civilian and space technology based at the INTEGRAL plant facility. In the machine tool industry, we have agreed to create centres of competence based at machinery manufacturing enterprises in both countries, aimed at jointly developing units and components for the production of new metalworking equipment.
A promising direction is aerospace — it is planned to master joint production of aircraft by 2026.
— What is the situation with investments in the Belarusian economy today? What legislative initiatives contribute to improving the investment climate in the country?
— The Belarusian economy continues to attract foreign capital. In 2023, net foreign direct investment exceeded $1.64 billion, representing a 7.3 percent increase compared to 2022. The growth rate of investments in fixed capital last year was 117.8 percent.
In 2024, this positive dynamics continues — as previously noted, during the first half of the year, investments in fixed capital grew by 7.6 percent.
To foster business development and implement new projects in the regions, the government is consistently working on measures to stimulate investment. In July 2024, an updated Investment Law came into effect. The key innovations include the creation of conditions for the implementation of major projects, and the stimulation of investment activities in the regions.
Efforts to improve the investment legislation are ongoing, with amendments being made to subordinate acts and new procedural tools being introduced.
Terra Nostra LLC, a new grain drying complex with a seed preparation line, Vitebsk Region, Senno District 
Keramika JSC, ceramic brick manufacturer, Vitebsk By Vladislav Sychevich
