Page 12 - BELRptDec18

4.3 Fixed investment
Belarus -Fixed capital investment 2011 2012 2013 2014 2015 2016 2017
Fixed capital investment change y/y
18 -12 9 -5.7 -15.5 -16.7 -16.7
GDP: Gross fixed capital formation, (USD mn) 22,372 21,342 27,376 26,004 16,091 12,192 13,559
Belarus expects to increase investment almost twofold by 2025, Belarus Economy Minister Dmitry Krutoi said during the parliamentary hearings held on 14 November, BelTA reports.
“We are ambitious. We seek to make it into Top-30 in the Doing Business ranking, to create the Eurasia Economic Union (EEU) best business climate, to increase the total investment in the country to BYN53bn ($25bn), almost twice the current level, by 2025. To do this, we need to work on several key areas: update the legislative framework, adjust a number of regulations governing conclusion of investment agreements, implement the roadmap to remove barriers and exceptions in the EAEU. We must simplify the procedures and reduce the time of obtaining all kinds of permissions. We should fully digitalize these processes as soon as possible in order to eliminate personal, subjective factors,” Krutoi said.
Investments in Belarus rose by 9.8% y/y in January-September 2018, but more is needed. Belarus is doing surprising well for being on of the most unreformed countries in eastern Europe and enjoyed GDP growth of 3.7% in the third quarter of this year – the fastest rate in the region.
However, with the government so completely in charge of the economy the small republic has struggled to attract much private investment other than some large government-to-government deals brokered with the Chinese, among others. The economy’s strengths remain manufacturing and trade.
In order to move to the next level the government needs to make and encourage a lot more investment. The proposal on the table are to prepare investment sites with ready-made transportation and engineering infrastructure, following the Russian industrial park model that has worked so well in the more progressive regions.
“The president supported the initiative of the government and allowed to attract credit resources in these areas. For example, we are working with the European Bank for Reconstruction and Development,” the minister said.
“We are planning to reformat the National Agency for Investment and Privatization. We want to make the agency a full-fledged one-stop shop for investors, said Krutoi.
Including in the list of major investment projects is a plan to upgrade the
12 BELARUS Country Report December 2018 www.intellinews.com