MINSK, 5 November (BelTA) – The Belarusian Economy Ministry expects transport industry and agriculture to fuel GDP growth in Q4 2019, BelTA learned from Economy Minister Dmitry Krutoi before the Council of Ministers session held on 5 November to review economy performance in January-September 2019.
Dmitry Krutoi noted: “We see that the industries that have been driving the GDP growth this year will keep their dynamics on the whole while some of them may do even better. We expect transport industry to demonstrate the highest growth. An increase in passenger traffic – all kinds of transportation – has been registered this year for the first time in many years.”
At the same time freight traffic is declining due to pipeline transport and the problem of polluted oil from Russia. “But our transport companies see opportunities for beating the trend by shipments of other kinds of cargoes, primarily construction materials and ferrous metals,” the economy minister explained.
The Economy Ministry also believes that warm weather this October has positively influenced the performance of Belarusian farmers. Apart from that, retail growth is expected. “Traditionally the fourth quarter of the year is all about New Year celebration, all kinds of promo actions and fairs. Retail trade demonstrates a high growth rate even now. In essence it is the key driver of our development from the point of view of domestic demand. We hope the pace will stay strong considering the level of salaries,” Dmitry Krutoi explained.
As for economy performance in January-September 2019, the GDP growth rate and the export growth rate are below the targeted levels. “The GDP has been affected by already mentioned reasons relating to polluted oil. I can also mention the terminated deliveries of dark oil products from the Russian Federation and falling export prices for potash fertilizers, oil, and oil products,” the official said.
Meanwhile, the level of salaries in January-September was slightly higher than this year's projections. “If salaries gain a bit in Q4, it will improve parameters of the real cash income of the population,” Dmitry Krutoi noted.
The foreign direct investment target was also hit in January-September. Investments were channeled into such projects as the China-Belarus industrial park Great Stone, the construction of the Nezhinsky mining and processing factory, the construction of the Belarusian National Biotechnology Corporation. According to the minister, work on these projects proceeds on schedule.
Dmitry Krutoi also mentioned good balance of foreign trade and a foreign trade surplus in excess of $0.5 billion.
