MINSK, 23 September (BelTA) – The Belarusian economy is doing quite well considering the challenging geopolitical conditions, Belarusian Prime Minister Aleksandr Turchin told the media following his report to the Belarusian president in Minsk on 23 September, BelTA has learned.
He noted the work of the agricultural sector this year. The country expects a record high grain harvest. “We expect one of the biggest harvests in history. The livestock sector is expanding. We have the products, processing capacity, and export channels in place,” Aleksandr Turchin noted.
He described supply diversification as the government’s most challenging task, but noted that it is being gradually addressed. The growth rate of exports of goods and services this year is 1.2%. “The accelerated growth rate of service exports is certainly encouraging. Developed economies typically have a higher share of services in their GDP than Belarus,” the prime minister said.
Aleksandr Turchin highlighted promising sectors like tourism and IT, which are among the government priorities, noting that developing the services industry as a whole is a key goal.
The prime minister recalled that in April, the government made a decision to adjust the procedure for regulating producer prices. The key goal was to ensure domestic producers could maintain profitable production. Using the example of meat and dairy enterprises in Slutsk, he reported that their profitability level had reached 6%.
“The enterprises have shifted from loss-making to marginally profitable production. This is clearly a fair solution in my opinion. Even a 6% return is insufficient for major investment projects. But we recognize this is adequate for the present situation,” he said.
The price structure also includes the factor of salary growth. “We have real salary growth of about 10%. Nominal growth is much higher, but salaries are part of the cost of every product,” Aleksandr Turchin noted.
“In my opinion, finding this balance, this equilibrium, this fairness is the government’s main task. Today, the government controls the processes taking place in the country,” the prime minister concluded.
“If we look at the global, geopolitical conditions, we are doing quite well. The economy is growing. Perhaps not at the pace we would like. But, in my opinion, we have reached a certain balance,” the prime minister said.
Aleksandr Turchin highlighted promising sectors like tourism and IT, which are among the government priorities, noting that developing the services industry as a whole is a key goal.
When asked about price stability, the prime minister noted that the traditional concept of an equilibrium price closely aligns with the president’s concept of a fair price formula. Aleksandr Lukashenko pointed out that pricing fairness must extend to both the producer and the seller, not just the buyer. “In general, it is an extremely difficult task to find a price that would satisfy all three parties,” he said.
The prime minister recalled that in April, the government made a decision to adjust the procedure for regulating producer prices. The key goal was to ensure domestic producers could maintain profitable production. Using the example of meat and dairy enterprises in Slutsk, he reported that their profitability level had reached 6%.
“The enterprises have shifted from loss-making to marginally profitable production. This is clearly a fair solution in my opinion. Even a 6% return is insufficient for major investment projects. But we recognize this is adequate for the present situation,” he said.
The price structure also includes the factor of salary growth. “We have real salary growth of about 10%. Nominal growth is much higher, but salaries are part of the cost of every product,” Aleksandr Turchin noted.
“In my opinion, finding this balance, this equilibrium, this fairness is the government’s main task. Today, the government controls the processes taking place in the country,” the prime minister concluded.
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