National News

Belarusian economy moves past recession onto growth trajectory

The official said: “Results of the first quarter indicate that the economy is past recession and has reached a growth trajectory. The main goals of the five-year term as determined by the head of state are being fulfilled. First, social stability has been ensured in the country. Real revenues of the population, salaries, and pensions are on the rise. The size of public sector salaries has exceeded 80% of the country's average. Employment is rising on the back of economic upturn. Employment increased by more than 2,600 people in March in comparison with the beginning of the year. Losses of working hours have been reduced. An increase in unemployment has been prevented. Nearly 13,000 people have been assigned new jobs.”

Speaking about the second task – ensuring economic growth simultaneously with macroeconomic balance, the official explained: “In conditions of the crisis we did not tighten the macroeconomic policy. Contrariwise, the approaches were relaxed. First, measures were taken to minimize the growth of interest rates on loans. Interest rates on new loans increased by only one percentage point in comparison with January 2020 to 11.9% per annum. In the complicated period the government followed a clear-cut principle: the state will support worker collectives and enterprises. In other words, those who enable employment and invest in development.”

According to the first deputy economy minister, they have managed to keep the situation on the foreign currency market under control. “Thanks to measures taken to curb prices year-on-year inflation plateaued out and didn't accelerate. Stability was preserved in the external sector. Export is growing fast. A surplus of foreign trade and the current account of the balance of payments has been secured. The heightened demand on the domestic forex market is fully satisfied. The government fully honors its forex commitments,” Yuri Chebotar said.

The first deputy economy minister also mentioned the fulfillment of the third task – quality growth of the economy. “Economic growth is picking up the pace. In January-April the GDP growth rate reached 120.5%. The positive results were achieved because the government made tactical and strategic decisions in time. Namely, solutions to curb price growth worked effectively. Belarus president decree No.534 and an action plan on encouraging export started working according to an expanded scheme as of 7 May. Decisions were made to support Belarusian producers within the framework of government procurement contracts. The government supported agriculture during the sowing campaign and took a number of other measures,” Yuri Chebotar concluded.