MINSK, 10 August (BelTA) – Belarus' economy remains on the growth track despite the pandemic and sanctions, Economy Minister Aleksandr Chervyakov said at the Big Conversation with the President, a meeting with the public, experts and media community in the format of a big press conference in Minsk on 9 August, BelTA has learned.
“Today our economy is facing a double blow. First, it continues to be affected by the pandemic. Second, there are sanctions imposed by certain Western countries. Nevertheless, the Belarusian economy is growing steadily. In H1 2021, GDP stood at 103.3%. The manufacturing industry was the biggest contributor with over 80% of the growth. The production expanded by more than 10% year-on-year. It is important that this growth came on the back of high-tech and export-oriented products: computing, electronic and optical equipment, mechanical engineering, woodworking products and pharmaceuticals. In other words, these are the industries on which we relied and which we upgraded. But most importantly, last year's decision not to put the economy on hold has proved to be right and insightful. As a result, we managed to retain production, competencies, personnel and this has taken us to where we are today,” Aleksandr Chervyakov said.
A number of other industries also contribute to the overall growth, he said. “This is evidenced by active recovery of cargo transportation. Transportation by container trains alone rose by 40%. Despite air travel restrictions imposed by individual countries, passenger air traffic fully recovered in H1 2021 and is now on the rise. This was achieved by re-directing passenger flows,” he explained.
The minister also noted that the main task for agriculture is to ensure food security. In particular, there is an increase in the output of milk, meat and other products constituting the basis for the food industry.
In addition, the IT sector is also showing sustainable growth. “Its growth pace is accelerating and exceeded 7% in H1. More and more IT businesses are launched in the country,” the minister added.
Consumer demand is bouncing back. “Public catering posted a nearly 20% growth. Retail sector is also back on track,” Aleksandr Chervyakov said.
The economy minister emphasized that government-subsidized housing construction for large families is ahead of the schedule. More than 60% of the target was fulfilled over half a year.
“It is important to note that economic growth rests on a solid foundation. The main efficiency indicator is that companies' net profit rose 3.7 times year-on-year,” he said.
The export of goods and services expanded by a third. “Additional $4 billion in export revenues were received. Foreign trade surplus amounted to $1.25 billion, the best result in the last eight years. Moreover, growth was reported in all commodity groups. Our agricultural machinery is in demand in foreign markets. Its export increased by 40%, that of passenger vehicles - 2.2 times, food products - 11%,” the minister informed.
“The export of services is growing rapidly (114%). The main contributors are transport and IT sector. All this suggests that we have not only held our ground, but also solidified our positions in key markets. Thus, in H1 2021, the export to Russia climbed by 20% to reach $7.4 billion. We are actively penetrating the Chinese market. Our export to this destination soared by 30%. The governments of the two countries seek to remove trade barriers and ease trading procedures. Work is also underway to diversify exports,” Aleksandr Chervyakov said.
The situation in the labor market is stable. The unemployment rate was 3.9%, the minister said. Belarus is among the countries with a low unemployment rate, Aleksandr Chervyakov added.
