The results of socio-economic development and performance of the national budget for Jan 2023 were considered at the Government session chaired by Prime Minister Alikhan Smailov.

First Deputy Minister of National Economy Timur Zhaksylykov said that the growth rate of Kazakhstan's economy for the reporting period amounted to 5.6%. The real sector grew by 2.3%, while the service sector grew by 7.6%. All main sectors showed positive dynamics, the best indicators are trade (+ 19.4%), information and communication (+ 18.1%), as well as construction (+ 12.5%, over 1 million square meters of housing was commissioned).

According to the Deputy Minister, the growth of investment in fixed assets amounted to 18.3%. In particular, the volume of investments in industry grew by 9.2%, in agriculture by 33.7%, in real estate by 33.7% and in transport and storage by 31.8%.

According to preliminary results for 2022, the foreign trade turnover grew by 32.1% to $134.4 billion. Exports rose 39.9% to $84.4 billion, imports reached $50 billion. Overall, the positive trade balance is $34.4 billion.

As Deputy Prime Minister – Minister of Finance Yerulan Zhamaubaev noted, for the reporting period the state budget received about 1.5 trillion tenge of income (plan fulfilled by 144%), including 1.1 trillion tenge in the national and 394 billion tenge in local budgets. The state budget expenditures in Jan. were executed by 93.5%, the national by 94.7% and local by 96.3%.

The Prime Minister stressed that to date, sustained growth of the economy is provided by the real sector, in particular, the manufacturing industry, construction and agriculture. Hence, the industrial sector increased by 1.5 per cent, including in the processing sector by 1.6%. An increase was recorded in the pharmaceutical industry (+ 51%), light industry (+ 11%), manufacture of textile products (+ 25%), petroleum refining (+ 11%), chemical industry (+ 11%), beverage industry (+ 33%) and food industry (+ 10%) and mechanical engineering (+ 12%).

Head of the Government added that stable investment activity, including in non-resource sectors, is a key factor for a rapid development of the economy.

As a whole at the end of Jan. we have seen growth in all major macroeconomic indicators in Kostanay Region and Almaty. The lowest indicators were achieved in the Abay and Karaganda regions.

"The start of this year sets a good positive trend; we need to keep the trajectory of this rate of economic growth. It is not an easy task in today's geopolitical environment. We need coordinated work and effective coordination in all sectors of the economy," Alikhan Smailov said.

Saturation of the domestic market with domestic goods and increasing production of non-raw materials should be a priority, he said.

"We need to encourage the development of small and medium-sized businesses, create an attractive business climate, support an active dialogue with investors," the Prime Minister said. 

The structure of investment, according to the Head of Government, should change towards the production of goods with high added value, including those in high-tech areas. In addition, it is important to ensure a qualitative implementation of the principle "tariff in exchange for investment".

"Every minister, regional akim, head of a national holding or company must take systematic measures to improve the welfare of citizens by increasing labour income and creating high-quality jobs. We need to find effective solutions on social and economic issues of priority to society," Alikhan Smailov said. 

Head of the Government pointed out that regional akims should pay special attention to stabilization of prices for socially important food products. The task by the end of the year is to reduce inflation by half, to 9.5%. In this regard, he said, it is necessary to take all necessary measures to implement the updated Action Plan to control and reduce inflation.

"We must make every effort to maintain the momentum of economic growth," the Prime Minister concluded.