Quarterly results of the economic development in Mogilev
The growth rate of the gross regional product constituted 109.5% with the annual forecast of 109-110%. The best economic indices among the industrial enterprises of the region had Mogotex OJSC (Mogilev) and the Bobruisk Republican Unitary Enterprise “Hydrolytic Plant”.
According to the governor of the region, Peter Rudnik, the Presidential Administration is drafting a Decree to register the Mogilev region with the National Board of Honour as the winner of the competition in terms of socio-economic development among the regions of the country in 2006-2010.
The growth rate of the gross regional product is the blueprint of the planned GDP grown of Belarus for 2011 (+9,5-10%). However, regardless of the growth of the gross regional product, the stocks of finished goods are growing too. In January and February, the stocks have increased by Br 167 billion and constituted Br 632 billion, which is due to the fact that during the two months of the quarter only 93.2% of the produced goods were shipped. The Head of the Executive Committee set the task to reduce stockpiles to the level of early 2011 at least, which means up to Br 465 billion. The regional authorities are particularly concerned that during the first quarter of 2011 the amount of foreign direct investment in the Mogilev region amounted to $ 3.9 million only.
The country's leadership has instructed the local authorities to raise minimum wages at enterprises by the end of 2019 to BYN 1,000, which would lead to an increase in the average wage in the economy as a whole to BYN 1 500. The pace of wage growth in 2017 is insufficient to ensure payroll at BYN 1000 by late 2017 without manipulating statistical indicators. In order to fulfil the president’s order, the government would have to increase budgetary expenditures on wages in healthcare and education, enterprises – to carry out further layoffs and expand the practice of taking loans to pay wages and restrict investment in modernisation of fixed assets. In 2010, the artificial increase in wages led to a threefold devaluation in 2011, an increase in the average salary to BYN 1500 will not match the capabilities of the economy and would lead to yet another devaluation.