General results of social and economic development
of the Republic of Karelia in 2004
In 2004 the policy of the Government of the Republic of Karelia in the field of social and economic development of the republic has been aimed at strengthening of economy, increase of the people's standard of life, and maintenance of their social guarantees. Due to the measures undertaken it was possible to provide positive results of work of the industry and other branches of economy as a whole, and growth of real incomes of the population.
Last year total regional product has increased 6% in comparison with 2003. The highest in the past five years rate of growth of industrial production has ben observed - 109.3% (compated to 106.1% in the Russian Federation). Growth of export of goods proceeded, volumes of rendered paid services to the population and communication services increased, the turnover of retail trade, commercial turnover of goods of transport enterprises, profit of enterprises, as well as wages and pensions increased.
In the industry the volume of manufacture has made 51,2 billion roubles, that is 12,3 billion roubles more than in 2003. Growth of industrial production has been achieved in the majority of industries: electric power industry, ferrous metallurgy, mechanical engineering and metal working, logging, wood-working, and pulp-and-paper industries. Eleven cities and districts have increased their contribution to development of the industry. Achieved in Karelia in 2004 rates of growth of manufacture of the major kinds of production considerably surpass averages across Russia: manufacture of electric power is 126,4% (101.6% in the Russian Federation), manufacture of iron-ore pellets is 108.5% (105.6% in the Russian Federation), removal of logs is 110.4% (98.0% in the RF), woodchip boards make 120.4% (112.5% in the Russian Federation), cellulose commodity is 111.1% (104.0% in the Russian Federation),newsprint is 120.8% (109.1% in the Russian Federation).
In 2004 volumes of manufacture in the industry of building materials, in food (including fish), flour-and-cereals and light industry are lowered. At the same time, development of these branches has prospects, first of all, due to modernisation of manufacture accomplished by enterprises, development of new kinds of production, stabilization of manufacture in Kondopozhsky Industrial Complex of Bakeries, Inc., and in fish branch due to increase in volumes of catch and processing of water bioresources.
Despite of decrease in volumes of agricultural production manufacture (12.5% in the comparable prices to the level of 2003), the branch improved its work. In 2004 the highest in the history of cattle breeding of Karelia milk yield of 4010 kgs. per cow has been achieved in agricultural organisations (3080 kg on the average across the Russian Federation), much work on improvement of fertility of soils executed, cattle-breeding farms were modernised, agricultural machinery was perchased, forages for wintering cattle were prepared in full.
The volume of investments into a fixed capital has increased to 12,6 billion rbls. (112,8% in prices comparable to the previous year). The volume of foreign investments in comparison with 2003 has increased to $40,7 million (17%). Total amount of international noncommercial projects' financing in 2004 has grown €400 thousand and has made more than €3 million. Launching of new large projects Construction of International Automobile Check-Point "Suoperä" (€5,6 million) and e-Karelia (€2 million) has been arranged.
Investment projects are successfully implemented in Karelia. Among the most significant projects there are completion of construction of the head gas main Petrozavodsk-Kondopoga, reconstruction of Segezha Pulp and Paper Mill, Inc., input of the 2nd turn of electric wiring production and organization of assembly of electronic devices in Karhakos, Ltd. (Kostomuksha), electrification of Idel-Svir railway site.
New and reconstructed enterprises manufacturing rubble and gravel in Medvezhiegorsk, Pitkaranta and Pudozh districts were put into commission. Construction of socially significant objects according to the orders of the voters received during election campaign of the Head of the Republic of Karelia of 2002 proceeded. In 2004 the following objects have been put into operation: school in the village of Lambasruchei of Medvezhiegorsk district, the main heat network in the 21 block of the town of Byelomorsk, the 1st turn of 60-apartment house in the town of Segezha, a boiler-house in the settlement of Letnerechensky of Byelomorsk district, water supply systems in the settlement of Louhi (a starting complex), a waterpipe in the settlement of Kalevala (the 1st turn).
Volume of the foreign trade turnover in 2004 has made $1038 million (including $842 million of export $196 million and of import), having 21% exceeded the level of 2003. Volume of export per capita in 2004 has made $1130 that exceeds the average level in Russia. The consolidated budget of the republic received 10,5 billion roubles of incomes (123% to the level of 2003), expenditures have made 10,9 billion roubles. Incomes of the budget of the Republic of Karelia in 2004 made 7583 million roubles (100.4% to the specified plan), and 4875 million roubles (101.2%) of tax and non-tax incomes has been received. In comparison with 2003 incomes of the budget of the Republic of Karelia achieved 37% growth. Execution of the budget of the Republic of Karelia under expenditures for 2004 makes 8021 million roubles (100.1% to budgetary provisions). In comparison with 2003 on-budget expenditures of the Republic of Karelia increased by 1560 million roubles.
The accepted budgetary obligations have beenexecuted almost in full. At the beginning of 2005 there was no delayed debts on payment of wages to workers of the budgetary establishments financed on budgets of the republic. Grants to the citizens with children were paid in due time. Preparation of objects of housing and communal services for the forthcoming winter and centralized delivery of fuel were provided by financial resources in corpore.
Real had monetary incomes of the population in 2004 were 6.3% above the level of 2003. Average wages have increased to 7000 rbls., growth of real wages has made 112.8%.
The level of officially registered unemployeds in Karelia has made 2.9% of economically active population.
Inflation in the consumer market of the Republic of Karelia was slowed down in comparison with the last year and has made 11.1% (12.9% in 2003). Financial results of work of the enterprises of the republic improved. According to Karelian State Committee on Statistics, in 2004 balanced financial result on large and medium enterprises has made 2204,6 million rbls. of profit, that exceeds the level of 2003 more than 14 times. Basically, growth occured due to the industry (9.5 times). Balanced losses in housing and communal services reduced by 24%.
Profitable enterprises have received almost 4 billion rbls. of profit (2.4 times growth to 2003), the basic contribution (66%) to its formation was brought by the enterprises of ferrous metallurgy and electric power industry. The share of profitable enterprises has made 54.9% of their total number (51.5% in 2003).