OREANDA-NEWS. September 22, 2011. On September, 21 session of the Government of Karelia chared by Andrei Nelidov considered the forecast of social and economic development of the republic for 2012-2014.

Alexander Hyunninen, Chief Federal Inspector in the Republic of Karelia, Galina Razbivnaya, Vice-Chairlady of the Legislative Assembly of Karelia, representatives of federal authorities and heads of regions have taken part in the session.

The forecast was developed in the Ministry of Economic Development of Karelia. The calculation used information received from enterprises of the republic. The report was made by Valentin Luntsevich, Deputy Head of the Republic of Karelia and Minister of Economic Development of the Republic of Karelia.

The document presented for discussion assumed two scripts of development of the republic. The conservative variant forecasted annual rates of economy growth at the level of 2 to 4 percent. The optimistic forecast takes into account measures stipulated in the project of the Program of social and economic development of Karelia for the period through 2015. This forecast predicts annual growth of the gross regional produce in 2012-2014 at the level of 4.5-5.5%.

Valentin Luntsevich at once has called members of the Government to support the optimistic forecast and work according to it as it allows to define higher goals for the republic, that, finally, will lead to improvement of the situation in many spheres of life.

One of the basic conditions of further development of the economy of Karelia is mobilization of investments. According to the forecast, mid-annual rate of gain of the physical volume of investments into a fixed capital will make 8.7%. Investment growth is predicted due to increase in investments in power, transport, mining, pulp-and-paper industry, woodworking and real estate. Large investment projects in the republic will be implemented by known companies (Russian Railways, Karelsky Okatysh, Kondopoga, Petrozavodskmash), and by new enterprises. For example, Kalevala woodworking enterprise constructed near Petrozavodsk.

Decrease of inflation for the Republic of Karelia by 2014 is predicted to make up to 5.5-6%.

In industry in the intermediate term prospect the rate of growth is predicted to make 4.5-5.5%. Higher rates of growth are expected in extraction of minerals. In processing manufactures under favorable conditions 5% annual growth of production is possible. The gain is provided due to development of processing of timber, metallurgical production, production of machines and equipment.

By 2014 it is supposed to build no less than 264,000 square meters of housing, that exceeds the level of 2010 1.9-fold.

As a result of measures taken in the field of social protection of the population and creation of jobs the level of registered unemployment is predicted at the level of 2.6-2.8%, that is considerably less than all-Russian forecast which makes 3.6%.

As a whole, presented conditions and forecasts, in the opinion of Valentin Luntsevich, are comprehensible for development of business in the republic and will allow Karelia to fulfil all the declared social obligations. Even now economy of the region has reached the pre-crisis level, modernization of enterproses will proceed and in the further.

By their decision, members of the Government and Head of Karelia Andrei Nelidov have agreed with the optimistic forecast of social and economic development of the republic in the following years. The forecast will form a basis for formation of a profitable part of the budget of Karelia in 2012 and the scheduled period of 2013 and 2014.