Bashkortostan’s economy shows growth

The results of the past year do not disappoint, but correspond to the forecast of socio-economic development given by the Ministry of Economic Development at the beginning of the year. Even in the first half of last year, concerns were raised by the problems that had accumulated as a result of the global financial and economic crisis, which held back the development of the construction and investment spheres. Agriculture of the republic suffered serious damage due to abnormal weather in the previous year..

However, in spite of the listed difficulties, these spheres of the economy have passed into a positive phase of development, and show steady growth. Compared to 104% in the first half of the year, the growth rate of the regional gross product in the second half of last year reached 109%. This is a sure sign of the onset of stability and it is very important in the context of the uncertainty of the global economy..

The growth rate of the volume of construction work reached 108.8%, investment capital showed an increase of 101.5%. Due to a good harvest, the volume of agricultural products increased 1.4 times.

By the end of last year, Bashkortostan achieved the lowest inflation rates since the beginning of economic transformation in the republic. The consumer price index was 106.2%.

This dynamics significantly improved the position of the region in the consolidated Russian index of the real sector of the economy. The report of the Ministry of Regional Development of the Russian Federation indicates that the situation in the financial and banking, social spheres and in the economy according to this index has moved the Republic of Bashkortostan from a position «worse than the average Russian» to the number of regions with a state «better than the average Russian». Among 38 similar regions, Bashkiria outstripped Komi, Perm Territory, Novosibirsk and Ryazan regions.

The development of the economy was stimulated by the increased consumer demand, the retail trade turnover increased by 5.2%. Bank loans have become much more affordable as a result of a decrease in inflation and an increase in wages of the population in the republic by 2.6% in real terms..

The decrease in the registered unemployment rate has improved the situation on the labor market.

Today we can say with confidence that the economy of Bashkortostan has managed to completely reverse the tendencies of the post-crisis decline in all spheres of financial and economic activity. This provides a good starting point for forecasting economic growth in 2018..

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