Eugene Evtushenko: the restorative period begins in economics

“The results of the first quarter 2010 are characterized by certain positive results” – the Minister of economic development RB Eugene Evtushenko stated at today’s meeting of the interdepartmental governmental budget commission.

Thus, in January-March the growth of the gross regional product made up more than 7% against its 8%-fall for the3 same period of 2009.

“Growth of external demand is one of the main factors, contributing to overcoming of the recession” – Eugene Evtushenko said – “The export of goods in January-February 2010 has increased 2,7 times as compared with the same period of time in 2009 (58,2%-fall). The external trade circulation has increased 2,2 times (50,3%-fall in January-February 2009).

The growth of industrial production by 16,3%, including mining operations – by 16%, in processing productions – by 17,1% and in production and distribution of electric energy, gas and water – by 14,5%, can be regarded as a positive result of the first quarter. Such substantial positive dynamics is explained by the effect of a low base of the corresponding period in 2009 as well as by the effectiveness of the anti-crisis steps.

The growth of the indices in agriculture was preserved too. In January-March 2010 the agricultural output has increased by 2,1% (in the first quarter of 2009 the growth was more noticeable 0 by 4,1%).

The level of investment activity substantially influences upon the economic situation in the Republic. In the first quarter the investments to the fixed capital reduced by 23%, the volume of construction works reduced by 8,5% and the rates of housing construction – by 1,9%.

Since the beginning of this year the circulation of retail trade increased by 4,5%. The rates of inflation slowed down by 3,7% and real disposable monetary incomes of population increased by 6,3%. At that the situation in the consumer market demonstrates low consumer expectations of the population, Eugene Evtushenko believes.

“The analysis of the main indices of the social-economic development for the period since the beginning of the year proves the beginning of the restorative period in our economics” – the Minister reported – “At the same time certain period of time is needed to reach the pre-crisis level”.