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Economic development of the Republic of Karelia in 2001

1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   2012   2013  

General Information

Industry

Foreign Relations

Interregional Relations

Tourism

Investment Policy

General characteristics of social-economic situation
in the Republic of Karelia

Due to the purposeful work of the Government of the republic, institutions of local government, and the heads of the enterprises it was possible to keep the growth of the basic economic parameters and to execute the majority of the predicated parameters.

So, on the results of 2001 growth of the industrial production has made 103.2% in comparison with the last year. In agriculture production has grown by 8.7% The foreign trade turnover has grown (104.4%) including export - 109.8%. The rate of investment in the fixed capital grew higher in comparison with predicated parameters (147%). Growth of average wages in real terms has proceeded (110.5%), which promoted increase in retailment turnover (109.2%). It was possible to keep the real monetary incomes of the population at the level of the last year (100.2%).

At the same time, decrease of physical output (97%) by the large and average enterprises of the republic has been admitted. The share of the unprofitable enterprises has increased, the volume of chargeable services for the population has decreased (by 12.1%). At the rates higher than it was expected inflation grew (118.3%), the debts on payment of wages at the enterprises was high there (110.6 million roubles for January 1, 2002). The level of the registered unemployment has increased slightly by 0.3% in comparison with 2002, and has made 2.8% of the economically active population.

The following tendences made the restraining impact upon the economic growth in 2001:

  • decrease of volumes of manufacture in ferrous metallurgy owing to redistribution of volumes of production and overburden operations in order to restore the capacity of open-cast mines of the Open Society "Karelsky oklatysh (Karelian iron-ore pellets)";
  • significant slowing down of production growth in the export oriented branches, first of all wood, woodworking and pulp and paper industries in comparison with the last year;
  • setback in production in engineering industry caused by falling of solvent demand for tractors, changes in the new output of the Open Society "OTP", realization of tough policy on liquidation of barter payments;
  • reduction of profitable sources of the regional budget.

Due to the changes in the federal tax laws in 2001 the budget of the republic has lost 455 million roubles, the territorial road fund has received by 645 million roubles less (losses have made 1100 million roubles).

Under these conditions the unique way of maintenance of steady rates of economic growth is to use the internal factors of growth. First of all, the Government of the RK managed to achieve the increase of investment activity in the economy of the republic and on this basis to achieve growth of competitiveness of production of the Karelian enterprises in the internal and external markets in series. The strict demand for results of the work of enterprises and regions was raised before the ministers, directors of the enterprises, and heads of local self-administrations.

Technical support
Created: March 25, 2002. Last updated: March 25, 2002.
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