Socio-economic development of the Minsk region, first Quarter 2011
The newspaper “Mіnskaya pravda” published data of the Central Statistical Office of the Minsk region on 5 May, regarding the outcome of socio-economic development in the first quarter of 2011.
In January-March 2011 the Minsk region secured the implementation of key forecasts. The gross regional product amounted to Br 5.6 trillion, i.e. increased compared with the similar period of the last year in comparable prices by 10.8%, while the prediction for 2011 was 9-10%.
The reporting period has not yet been affected by the currency crisis that broke out in April and the local authorities managed to match major performance indicators with the designated level. Nevertheless, the first two months of the year (there is no March data) have been profitable for 1030 organizations of the region i.e. for 74.2%.
The growth of wages stopped. Nominal gross average monthly wages and salaries amounted to 1,429.4 million rubles. In December 2010 the figure was much higher, 1,520.7 thousand rubles. Real wages in March compared with February 2011 decreased by 0.2%.
A situation with foreign direct investment is catastrophic on a net basis (excluding debts to direct investors for goods, works and services). It was planned to attract over one billion dollars of FDI to the Minsk region in 2011. De facto, during the first two months of the year as little as 6.8 million was attracted.
In April one of the two largest enterprises, i.e. automobile giant BelAZ, was not affected by the crisis: the personnel works full-time, while the plant site is packed with finished products.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.