Business news

MINSK, 28 August (BelTA) - The Economy Ministry expects the export of services to increase to a record level of $9.7 billion in 2019, Belarus’ Economy Minister Dmitry Krutoy told the media, BelTA has learned.

Investment and exports will remain the main growth drivers in Belarus in 2019. Investment should be outpace the GDP growth about two times. “This is a difficult task for our economic entities but Br28 billion which we are planning to raise in investment next year is quite feasible. Today we see that about 80% of this target will be met as 671 projects have already been confirmed,” Dmitry Krutoy said.

The export of goods and services should outpace the GDP as well. Particular attention will be devoted to the export of services. In 2019 it is expected to increase by 7.6%. Key services (IT, tourism) are forecast to grow even faster: by 12% on 2018. Overall the services sector is projected to expand by $700 million. “For the first time we will get overall foreign currency revenue from this segment of our economy at the level of $9.7 billion. Transportation, logistics, IT services are becoming ‘or and gas’, which we lack, for our economy,” he noted.

Ordinance No.8 will facilitate growth in the IT sector. The growth in the tourism industry is excepted to come on the heels of the 2nd European Games and the 30-day visa-free travel. The construction industry companies have proved their worth having won contests and concluded several major contracts for road construction and social facilities in Russia.

Dmitry Krutoy recalled that GDP is expected to expand by 4% in 2019 (reviewed downward by 0.1 percentage point). “Any less is simply impossible. This is a key parameter of our medium-term development program up to 2020. The structure of the GDP growth has been adjusted a bit. Approximately 75% of the growth will come from domestic demand and 25% from external factors,” the minister said. Originally it was planned that the export would grower slightly higher, but certain adjustments were made in the light of the external factors seen literally in the last month (oil prices, the slowdown in the world economy, Russia's GDP forecast reviewed downward by 0.8 percentage points).

Income of the population will continue to grow coupled with the increase in productivity. Emphasis will be placed on salaries in the public sector: they will be increased to account for 80% of the average salary, pensions - 40% of the average salary. “Taking into account the instructions of the president, income of the low-paid sectors of the population will be increased first thing. These are pedagogical workers, nursery teachers, doctors, nurses, and so on,” he said. The number of people employed in the economy in 2019 will increase by 9,000-10,000.