Kazakhstan's economy maintains moderate growth rate

The results of social and economic development of Kazakhstan for 10 months of this year were considered at the Government session chaired by the Prime Minister of Kazakhstan Alikhan Smailov.

According to the Minister of National Economy Alibek Kuantyrov, in the reporting period the GDP growth rate of the republic amounted to 2.5%. In particular, the real sector of the economy grew by 2.8% and the service sector by 1.6%. Among the sectors, agriculture (8.2% growth), information and communication (7.1%), construction (5%), manufacturing (4.3%), trade (4.1%), transport and storage (3.9%) showed a positive trend.

In Jan-Sept this year, the foreign trade turnover grew by 35% to $98.4 billion, with exports up 47.5% ($63.8 billion) and exports of processed goods up 37.5% ($19.3 billion). Imports amounted to $34.6 billion (up 16.5%). On the whole, the positive trade balance of Kazakhstan reached $29.3 bln (2.2 times growth).

According to Deputy Prime Minister, Minister of Finance Yerulan Zhamaubayev, the state budget received 12 trillion 427 billion tenge in revenues (plan fulfilled by 104%). In particular, the national budget was replenished by 8.4 trillion tenge (102%), local budgets by 4 trillion tenge (108.5%). The state budget expenditures were executed by 96.7 percent, including the national budget by 98 percent (14.5 trillion tenge), local budgets by 94 percent (8.1 trillion tenge).

Deputy Chairman of the National Bank Berik Sholpankulov also spoke at the session.

Having heard the speakers, the Prime Minister said that to date the economy retains a moderate growth rate, and the key factor of its stability remains the real sector, which also has a positive trend. Thus, the production in the manufacturing industry grew by 4.3%, the machine-building industry by 7.7% and the agriculture by more than 8%.

According to Alikhan Smailov, one of the main factors of economic growth is attraction of domestic and foreign investments. In general, during the reporting period the growth of investments in fixed assets amounted to 6.7%.

"At the same time, there is an activity in attracting investments specifically in the non-extractive industries. High rates have been recorded in real estate transactions, transport and storage, agriculture, industry," Prime Minister said.

He added that all major macroeconomic indicators show growth in Kostanay, Akmola, Zhambyl, East Kazakhstan, Kyzylorda regions, Almaty and Shymkent. The slowest pace was recorded in Ulytau, Abay and Mangystau regions.

Alikhan Smailov stressed that in order to maintain the positive dynamics, we need to strengthen work on further diversification of the economy, attract investment and create permanent jobs.

"Regional akimats should adhere to targets, intensify work on attraction and maintenance of investments and regularly monitor implementation of investment projects," he said. 

In addition, the Prime Minister noted that it is necessary to focus on work to curb price increases, as the greatest contribution to inflation continues to be made by the rise in prices of food products.

"This indicates a lack of measures taken, primarily by the akimats," Alikhan Smailov stressed.

In conclusion, he noted that the regions need to ensure by the end of the year the achievement of the planned indicators of socio-economic development and effective implementation of the tasks set by the Head of State.

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