Penza, 27 October 2016. PenzaNews. The growth of gross regional product (GRP) in the Penza region is expected to be 1-2% in 2017. This was announced by the first deputy minister of economy of the Penza region Rauf Chakaev at the meeting of the regional government on Thursday, October 27.

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“This year, there has been positive dynamics of the major indicators of the socio-economic development, and despite limited budget, real economy continues to be supported,” he remarked.

According to Rauf Chakaev, there has been positive dynamics in the industry, agriculture and housing development.

“In 2016, the gross regional product amounts to 338.7 billion rubles, which in comparable prices corresponds to the level of 2015,” the first deputy minister added.

He said that the main industries, which accounted for over 70% of GRP, are industry, agriculture, construction, transport, communications, and trade.

“Impediments to the economy growth may be a slowdown in the growth of consumer demand, […] significant currency fluctuations, growth of accounting bank rate and tightening of credit conditions,” Rauf Chakaev said.

According to him, in the sphere of industry, the development priorities will remain implementation of investment projects, creating new industries, modernization and renovation of fixed assets and realization of import substitution programs.

“Agricultural output in 2016 is expected to reach 80 billion rubles, which is 3.9% higher than in the previous year.[…] In the forecast period, the average annual growth rate of agricultural output is expected to be 2-3%. By the end of the forecast period, the total gross output for basic version will be more than 95 billion rubles and will increase to a rise in 2015 by 10.2%,” the first deputy minister added.

He noted that the decline in demand is observed in construction, as well as the slowdown in investment activity of enterprises, there are barriers to lending and high level of economic uncertainty, but next year the growth of 1-2% per year is expected.

“The sphere of trade and services is forced to face new challenges. […] According to the results of 2016, the volume of retail trade is 98.9% to the level of the previous year, the turnover of catering – 99%. The volume of paid services per year shows a small growth of 1%. […] With the growth of real disposable incomes and the economy stabilization, gradual shift of the population from saving behavior to restoration of consumer activity is expected,” Rauf Chakaev added.