PM reported to President on economic results, GDP and export growth
Belarus’ Head of State met with Prime Minister Roman Golovchenko with a report, and the discussion focused on the economic results in January-September 2022, annual forecasts and the situation in problem sectors
The Prime Minister briefly recalled how the situation had been developing, “Since March, almost 50 percent of Belarusian exports have been put under real threat – not to mention the attendant difficulties related to transportation, settlements, and so on. What have we come to? Since July, the decline in GDP has stopped and, in September, GDP added 0.2 percent. Another 0.3 percent is expected for October. Accordingly, we will reach 95.6 percent based on October figures.”
Later, in his talk with journalists, Mr. Golovchenko stressed that GDP is planned to be increased until the end of the year. “Th growth may not be very rapid, but it will be consistent and sustainable. The President was reported on the situation in key sectors: petrochemistry, oil refining, woodworking and mineral fertilisers. The situation is absolutely manageable, and somewhere it is even favourable. For example, the Government is very pleased with exports,” he explained.
As noted by the Prime Minister, export volumes have been growing since April and, in August, they exceeded the level of 2021. It was planned that the export shortage in terms of the US, the EU and Ukraine would amount to $16bn, but this figure actually made $6.1bn, including $5.2bn reoriented to other markets.
“We can assert now that there is no problem with Belarusian exports,” Mr. Golovchenko said. “We are especially pleased with the current foreign trade balance which is $3.5bn positive. I think this figure will reach $4bn next month. This is a net inflow of currency, which does not put pressure on the exchange rate, on gold and foreign exchange reserves, on financial stability. The total profitability of the economy is about 9 percent, and the net profit of enterprises is growing: it is already 10 percent higher than the 2021 indicators – the year which was successful for us. A debt burden on enterprises is being reduced, so the flow of funds is sufficient to repay loans and borrowings at an accelerated pace.”
Among the existing problems, Mr. Golovchenko named external accounts receivable, which tend to grow. “Actually, we understand that there are normal external accounts receivable. These are advance payments transferred to suppliers, and deferred payments that have not yet been received. However, there is also overdue debt. To a greater extent, it is due to the fact that money is being transferred not as fast as we would like. This problem is under control, and it does not have any depressing or destabilising effect on work,” he said.
