Business news

6 Apr 2022

Free economic zone Grodnoinvest’s export 1.5 times up in 2021

An archive photo

GRODNO, 6 April (BelTA) – Export of the free economic zone (FEZ) Grodnoinvest rose by 1.5 times in 2021. Foreign investments exceeded $160 million, the press service of FEZ Grodnoinvest told BelTA.

In 2021 companies residing in FEZ Grodnoinvest substantially increased their industrial output, export to CIS and non-CIS states and raised a record high volume of net foreign direct investments. In 2021 the foreign trade turnover of FEZ Grodnoinvest resident companies rose by more than 40% to $2.1 billion. Export of Belarusian products was a driver of the growth. Its volume totaled $1.4 billion, 146% as against 2020. Foreign trade surplus reached $721 million, $283 million up from 2020.

Key target markets for FEZ Grodnoinvest residents are Russia, Poland, and Ukraine. These countries account for 84% of the export volume. FEZ Grodnoinvest resident companies ship their products to a total of 63 countries. 2021 saw a substantial increase in shipments of Belarusian products to Denmark (10.8 times up from 2020), Sweden (8.1 times up), Austria (4.7 times up), Italy (4.5 times up), UK (3.1), Netherlands (2.5), Germany (2.3), and the USA (1.7). Export to European Union countries rose by 74%. The share of these countries now stands at 24% of the total export by FEZ Grodnoinvest resident companies.

Goods made of wood and paper, furniture, food, and goods for agricultural applications represent the bulk of the export (over 70%). 2021 saw the highest increase in export of goods made of wood and paper (191%), optic equipment (174%), chemical goods (157%), food (135%), and metals (134%).

In 2021 FEZ Grodnoinvest resident companies raised $81.5 million in net foreign direct investments. The figure rose by more than 2.2 times over the course of five years. The share of FEZ Grodnoinvest in Grodno Oblast’s total figure was 64%. Four companies with investments from Portugal and Belarus became new FEZ Grodnoinvest residents in 2021. FEZ Grodnoinvest resident companies attracted $160 million in foreign investments in 2021. FEZ Grodnoinvest resident companies have raised over $956 million in foreign investments since the free economic zone was established. It is the best figure among Belarus’ free economic zones.

The FEZ Grodnoinvest press service added that Austria ($61 million) and Cyprus ($46 million) were key investors in 2021. The top five also includes international organizations ($25 million), Poland ($12 million), and Netherlands ($5 million). The overall geography includes 15 countries including Germany, Ukraine, Russia, Turkey, Ukraine, Slovakia, and other ones. Fixed-capital investments amounted to $140 million. Money is primarily invested in manufacturing enterprises located in FEZ Grodnoinvest’s industrial parks in Smorgon ($51 million), Svisloch ($40 million), and Grodno ($24.7 million).