Alikhan Smailov: Government priority to ensure stable economic growth of at least 6%

The results of socio-economic development of Kazakhstan and the implementation of the national budget for January-November of this year were considered at the Government session chaired by Prime Minister Alikhan Smailov.

Minister of National Economy Alibek Kuantyrov reported that during the reporting period the growth rate of the republic's economy reached 4.9%. Positive dynamics in the real sector amounted to 3.5%, in services sector to 5.6%. Among the industries, the greatest growth is demonstrated by construction (12.6%), trade (11.3%), information and communication (7.6%), as well as transportation and warehousing (7.1%).

The growth rate of investments in fixed assets amounted to 14.6%. Their inflow increased in such spheres as information and communication by 2.8 times, transportation and warehousing by 58%, trade by 34%, education by 17%, agriculture by 11%, industry by 8.5%, including manufacturing by 4.6%.

According to preliminary results, in January-October foreign trade turnover increased by 2.6% and amounted to more than $114 billion. Exports are at the level of about $65 billion, with exports of processed goods - about $21 billion. Imports of goods amounted to more than $49 billion. In general, the positive trade balance of the republic exceeds $15 billion.

According to Deputy Prime Minister – Minister of Finance Yerulan Zhamaubayev, the state budget received about 18.2 trillion tenge of revenues and the plan was fulfilled by 98.6%. Thus, the republican budget was replenished by 12.6 trillion tenge, local budgets received 5.7 trillion tenge. At the same time, state budget expenditures have been executed by 96.5%.

Prime Minister emphasized that according to the results of 11 months as a whole all sectors of the economy demonstrate positive growth rates. In particular, machine building has grown by almost 27%. A significant growth was recorded in light industry by almost 12%. This was due to the increase in the production of textile products by 20%.

The production of mineral products increased by more than 4%, the output of plastic products by 5%, food products by almost 2%. The mining industry grew by more than 5% due to the growth of oil and natural gas production. At the same time, high growth rates (+12%) were ensured in the construction sector with over 15 million square meters of new housing commissioned.

In general, positive dynamics is noted in Kyzylorda region, Zhetisu and Abay regions, as well as in the cities of Almaty and Shymkent.

As Alikhan Smailov noted, the key factor of economic growth is active attraction of investments.

"Emphasis should be placed on the implementation of investment projects in non-resource industries, primarily in manufacturing, agriculture, transport, logistics, IT and tourism. Investment policy should be aimed at improving the quality of attracted foreign and domestic investment, improving infrastructure for investors, including through the domestic stock market," Prime Minister pointed out.

He reminded that in order to increase the efficiency of this work, the Head of State signed a decree on granting special powers to the Investment Headquarters. 

"The responsibility of heads of state bodies, as well as subjects of quasi-state sector for the results of the work carried out has been increased," Alikhan Smailov emphasized. 

According to him, it is also required to reorient the system of state support measures towards competitive, export-oriented and high-tech companies.

"An additional impetus for business development should be the full implementation of the principle of "regulation from scratch" and the final launch of the Risk Management System in the field of state control and supervision," Prime Minister said. 

He also added that inflation in November of this year fell to 10.3% and demanded from state agencies to ensure further qualitative implementation of the Set of measures to control and reduce inflation.

"Next year it is necessary to continue work to ensure qualitative growth of the economy. The Government's priority task for the mid-term year remains to ensure stable economic growth at the level of at least 6%. Undoubtedly, the task is ambitious and requires full commitment and consolidation of efforts from all of us. We have all the tools for its solution," Alikhan Smailov concluded.

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #Budget #Construction #Economy #Finance #Government session #Manufacturing industry #Socio-economic development

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