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Mogilev Regional Executive Committee
25 February 2021

Priorities for 2021: balanced development of the regions of the Mogilev region, growth in investment flows, profitability of enterprises and exports

In the extremely difficult conditions of 2020, all efforts of the state administration of the Mogilev region were focused on supporting the region's economy. At the same time, the main thing should be noted: it was possible to solve the most important task - to preserve the smooth operation of enterprises and prevent mass layoffs of workers. Deputy Chairman of the Mogilev Regional Executive Committee Ruslan Strahar drew attention to this , speaking today at a meeting where the results of the socio-economic development of the region were summed up and the execution of the budget for 2020 was considered.

According to Ruslan Strahar, the growth of GRP has been gradually recovering since June and has already exceeded the level of 2019 in 9 months, and has reached 100.9% in a year. By the way, this is the best indicator in the country, which did not work out by itself. It has been achieved through the efforts of residents of the Mogilev region in all areas. Thus, the industry provided a growth rate of 103.4% (this is also the best indicator in the country). The highest growth rate of grain production is in our farmers.

The results of 2020, in fact, give an assessment for the entire five-year period, stressed the Deputy Chairman of the Mogilev Regional Executive Committee. In this regard, it is important to see the dynamics of the development of individual organizations and entire sectors of the economy behind the numbers, in order to form management and development on their basis, as well as to bring specific tasks to the city executive committee both for 2021 and the new five-year plan.

For 2016-2020, the region ensured the implementation of a five-year program for the export of goods. Even despite the objective decline in 2020, in general over the five-year period, the rate was 154.2% (with a target of 128%), the export of services - 146.8% (119%). For 5 years, the region's economy received $ 409 million of direct foreign investments (with the assignment of $ 362 million). In addition, the task was completed to create jobs and wages, the growth rate of which amounted to 174.7% by 2015 (against the task of 171%).

The results of the work of industry, agriculture, construction, housing and communal services, as well as social sectors were discussed in detail the other day at separate meetings with the participation of the chairman of the regional executive committee, heads of city executive committees, structural divisions of the regional executive committee, as well as heads of a wide range of organizations. Here they gave a principled assessment of the work of local personnel, formulated specific instructions that will be included in today's decision of the regional executive committee when it is finalized. In this regard, Ruslan Strahar did not dwell on the production indicators of individual industries, but focused on those aspects of the results of 2020 that will be of key importance in 2021.

The first is the financial condition of the organizations. Certain positive trends in this area were outlined in 2020. The amount of profit from sales in the region increased 1.7 times compared to 2019 and amounted to Br876.1 million. All areas of the real sector of the economy worked with sales profit. The largest growth is in construction (2.7 times), agriculture (2 times), industry (1.7 times), trade (1.3 times). There was an increase in the profitability of sales and products sold.

At the same time, there are questions for the industrial complex and the transport sector. The modernization carried out in a number of industries has led to the need to attract and further service foreign currency loans. “External factors in the form of fluctuations in exchange rates will have a negative impact on the final financial result of enterprises in the current year,” Ruslan Strahar emphasized. - The task of managers is to continue to work on optimizing the loan portfolio and improve the financial condition of enterprises by reducing costs. It is also important not to forget that the main goal of any enterprise is to make a profit, and not production volumes for the sake of “shaft”. Low profitability, and even worse - unprofitableness, lead to a lack of sources for the growth of wages, and what is important - investment in further development. "

In addition, the deputy chairman emphasized that by the Resolution of the Council of Ministers "On the socio-economic development of the Republic of Belarus for 2021", the key task for 2021 is to create the starting conditions for entering the trajectory of accelerated development and launch a new investment cycle in the new five-year period. In this regard, the regional executive committee for this year, the indicator "Investments in fixed assets" is defined as a target, so it will serve to assess the effectiveness of the chairmen of each region of the Mogilev region.

In 2020, investments in fixed assets amounted to Br2 billion 7 million, which is 88% in comparable prices to the level of 2019. Ruslan Strahar recalled that the investment process has a pronounced cyclical nature. First, there is a sharp increase in investment due to large projects. But they end up and replacing them with equal investments in a specific territory is an impossible task. Therefore, it is so important to pay attention to the uniform development of all regions and the progressive growth of investments in the region as a whole.

In this regard, the tasks for the entire vertical of power for 2021 will be: ensuring the commissioning of housing within the framework of the increased task brought by the regional executive committee - 414 thousand square meters, the implementation of investment and infrastructure projects. At the same time, Ruslan Strahar emphasized, the Head of State was instructed to envisage at least one industrial investment project in each district without exception. Also, for the current five-year period, the republic is completing work on the formation of the National Infrastructure Plan (such a consolidated document is being formed for the first time), which is based on the State and regional investment programs. In this regard, the Committee for Architecture and Construction, as a coordinator on this issue, together with the involved regional services (housing and communal services, social sphere,

Speaking about foreign economic activity in 2020, Ruslan Strahar noted that, for obvious reasons, it was rather unstable. If in the first quarter exports exceeded the level of 2019 by 12%, then the closure of markets and lockdowns of partner countries led to a drop in shipments in April to a level of 70% from last year. Realizing the situation, our enterprises began to quickly restructure in search of new markets. Compared to 2019, goods produced in the region were additionally exported to the markets of 12 countries.

It was unexpected for many abroad that their residents began to actively repair and change furniture under the regime of essentially house arrest, and against the background of stoppages of many European companies, Mogilev organizations were able to take advantage of the situation and significantly increased the volume of shipments.

Despite the measures taken, at the end of the year, the export of goods (excluding organizations subordinate to the republican government bodies) amounted to $ 1.2 billion, or 95.3% to the level of 2019. Although, if we approach it objectively, the Mogilev region as a whole has increased the export of goods by more than one and a half times over the five-year period. Despite a difficult year for foreign economic activity, 120 new exporting organizations began export deliveries in 2020. We managed to ensure the main quality indicator: the balance of foreign trade in goods amounted to plus $ 478 million, which is even higher than the level of 2019 by $ 115 million.

In 2020, the region fulfilled all the forecast indicators in the field of employment promotion. This was the result of the whole range of measures taken, which were aimed at stabilizing the situation on the labor market. Labor demand is gradually recovering. Today over 7 thousand vacancies have been announced in the region. On average, there are more than 5 vacancies per unemployed. All this had a positive impact on the regional economy.

Compensating the tasks for the development of the region, the chairman of the Mogilev Regional Executive Committee Leonid Zayats emphasized that, according to the decisions of the All-Belarusian People's Assembly, the main goal of the new five-year plan is to ensure social stability in society and increase the welfare of citizens through high-quality economic growth, building up social capital, and creating comfortable living conditions. work and self-realization. And it is necessary to bring this to life today. The task of each local leader is to ensure their precise implementation, as well as the balanced development of each organization and districts and cities as a whole.

Written by: mogilev-region.gov.by

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