Kazakhstan's economy grows by 4.5% in five months of this year

The results of Kazakhstan's development and performance of the national budget for January-May 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 republic's economy grew by 4.5%. In particular, growth in the real sector amounted to 3.6%, in services to 4.9%. Positive dynamics is observed in all the main branches, the best indicators are shown by construction (+12.1%), trade (+10.2%) as well as information and communication (+9.1%).

The growth rate of investment in fixed assets amounted to 17.2%. Their inflow increased in areas such as transport and storage by 56%, agriculture 31%, industry 15.7%, as well as real estate transactions by 3%.

According to preliminary results in January-April foreign trade turnover rose by 11.1% to $44.4 billion. Exports were $25.5 billion, including exports of processed goods rose by 7.5% to $8 billion. Imports of goods reached $18.9 billion. In general, the positive trade balance of the country amounted to $6.6 billion.

Deputy Prime Minister and Minister of Finance Yerulan Zhamaubayev pointed out that for 5 months of this year the state budget received over 8 trillion tenge in revenues and the plan was fulfilled by 103%. Besides, the national budget was replenished by 5.4 trillion tenge (93.8%) and local budgets by 2.6 trillion tenge (128.9%). Plans for revenues are exceeded in almost all regions. At the same time state budget expenditures were executed by 98.5%, national budget by 98.8%, local budgets by 98.9%.

Prime Minister stressed that over five months the major contribution to the growth of the economy of the republic was made by the manufacturing industry. In particular, there was a confident dynamics in mechanical engineering 32%, including automotive industry 41%, as well as in light industry 31%.

The construction industry grew by 12.1%, the service sector by almost 4.9% and agriculture by 3.5%. The output of finished metal products increased by 11%, plastic products by 7.7%, food products by 6.5% and mineral products by 4.1%.

In general, during the reporting period for all major macroeconomic indicators there was an increase in Abay region, Akmola, West Kazakhstan, Kostanay, Pavlodar, North Kazakhstan regions, Ulytau region and Almaty city. The smallest indicators are observed in Atyrau and Almaty regions.

As noted by the Head of Government, international financial institutions have reduced the forecasts for global economic growth by almost 2 times.

"However, despite the external factors, we need to maintain macroeconomic stability and to ensure an increase in the rate of economic growth. We need to concentrate on the quality development of basic industries, and take effective measures to improve the welfare of citizens through the growth of labor income and the creation of quality jobs," Smailov said.

At the same time, Prime Minister pointed out the need to strengthen financial discipline, as a number of administrators of budget programs have not absorbed funds. In this regard, it is necessary to ensure strict compliance with budget parameters and effective allocation of funds to achieve the greatest socio-economic effect.

"The execution of planned investment measures for repair and reconstruction of housing and communal services infrastructure should be under control. All planned indicators of socio-economic development must be achieved," Alikhan Smailov concluded.

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #Economy #Government session #Socio-economic development

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