Belarus to get $6.4-6.5bn in net FDI in 2011

In 2011 Belarus is set to attract between $6.4 billion to $6.5 billion of foreign direct investment on a net basis. The target is envisaged in presidential decree No 596 “On the most important targets of the social and economic development forecast of the Republic of Belarus for 2011”, told Deputy Economy Minister Dmitry Golukhov.

The index ‘foreign direct investments on a net basis’ assesses the possibility of financing the current account balance by raising foreign direct investments, Dmitry Golukhov said. Of course, this money is not used to cover the deficit. It is a tool to raise funds which Belarus lacks today. The point is about management and manufacturing technologies. That is why the new forecast is closely related to other indexes assessing the quality of economic development such as profitability, labor capacity and the ratio of innovations in the whole output. Such investments are a source of know-how and new value-added jobs. “It means that foreign direct investments are a tool to raise funds,” said the Deputy Economy Minister.

He also said that over the last five years annual foreign direct investments in Belarus on a net basis stood at $2 billion. “Therefore the figures mentioned in the decree justify our ambitious plans,” Dmitry Golukhov said.

He also explained why the decree abolished some indexes, including the consumer goods growth rate. The decree switches from quantity indexes to quality ones. In 2011 this index will not be tracked as the country is starting to employ a standard industrial classification of economic activities. “The Belarusian Statistics Committee will not be able to provide such data. Even if we had such an opportunity, we would not include it in our reports,” said Dmitry Golukhov.

According to