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Economic development of the Republic of Karelia

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

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General information

Stable economic development is the main resource for solving social problems in the republic.

As a result of the efforts taken by the Government of the republic of Karelia a stable trend of improvement the basic parameters was kept in 1999.

The whole year was characterized by the growth of production volumes in industry. In the first quarter of 1999 physical volume production index made 114,9% comparing to the first quarter of 1998, then the year overall it made 120,6% that is much above average in Russian Federation - 108,1%.

In 1999 for the first time since economic reforms has been conducted the growth of investments into the fixed assets. It made 146% comparing to 1998. As a result the financial situation of enterprises was improved. More than half of all enterprises were profitable. The crisis in forest complex was overcome. Good results were received in plant-growing.

Economical revival resulted in decreasing of registered unemployment: from 5 ,2% in January up to 3,4% in December.

From January 1999 inflation kept going down. Price rates at consumption market in average didn't go higher than 2,2%.

Turnover of massof commodities rates went down as well: if in January retail turnover decreased by 24%, then in the year overall - by 10,4%.

All that made positive impact on the dynamics of tax payments to the republican and local budget, the outside budget funds. It allowed to solve the most drastic social problems:

  • to decrease salary debts (in 3,3 times) in industrial and social sections of economics;
  • to pay back the family allowances debts (till March 1999);
  • to pay back pension debts and pay pension money at the proper time;
  • to help disabled persons to purchase wheel-chairs and other special equipment;
  • to increase financing of welfare institutions.

As a result social tension in the republic went down.

Nevertheless all these positive trends considering, the level of living of the population is still low. But since early 1999 the growth of real income increased. .

Thus, the main objectives of economic politics for 2000 are to keep positive trends going, to strengthen restoring processes in industry, to create preconditions for the growth of living level of population.

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Official information
(C) 2000 Government RK

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