At the government session chaired by the Prime Minister Askar Mamin, the issue of the country's social and economic development for January - November 2020 was considered. In his report, Minister of National Economy Ruslan Dalenov noted the positive dynamics of economic development over the period under discussion.

Noting the high trend of growth in indicators, the minister noted the construction industry and the manufacturing industry. Business activity in the service sector is also improving, and demand for durable goods is recovering.

“The growth of the real sector has accelerated to 2%. The dynamics of growth in the production of services improved to minus 5.9%. As a result, the GDP growth rate was minus 2.8%. Annual inflation amounted to 7.3%,” Dalenov noted.

Investments in non-extractive sectors, lending to the economy, growth of the real sector and revitalization of the service sector, as well as measures to support the economy, remain the basic factors for improving dynamics.

Investments excluding the mining industry grew by 17.3%. The minister also noted that a significant amount of investment has been attracted to housing, transport, manufacturing, including food, agriculture.

Lending to the economy increased by 4.2% compared to the beginning of the year. The largest growth in loans is observed in communications, construction, agriculture and industry.

"Lending to small businesses increased by 8.9%, which is higher than the growth of consumer loans and lending to the economy as a whole," said Dalenov.

According to the minister, measures to support the economy were actively taken in the reporting period. To preserve and create jobs, the Employment Roadmap is being implemented, tax incentives have been taken for the affected industries, loan deferrals have been granted, the instruments of concessional lending to SMEs have been significantly expanded, and loans are refinanced on preferential terms. Sectoral support measures are also being implemented under the Comprehensive Growth Recovery Plan.

“In November, a mission from the International Monetary Fund praised the pandemic response and supported initiatives to ensure sustainable growth. The dynamic growth continues in the manufacturing industries. High rates are demonstrated by pharmaceuticals — 39.5%, light industry — 15.5%, mechanical engineering — 16.4%, including the automotive industry — 52.6%,” Dalenov noted.

November figures show a recovery in the service sector. In particular, according to the minister, trade increased by 17.1%, arts, entertainment and recreation — by 17%, technical activities — by 15.9%, accommodation and food services — by 10.5%, education — by 7.6%, communications — by 4.5%, repair of equipment and products — by 3.5%.

Thus, the restoration of the service sector continues. In foreign trade for 10 months of this year foreign trade turnover amounted to $70.5 billion, exports — $39.2 billion, imports — $31.3 billion. Thus, the trade surplus was maintained at $7.9 billion.

“Growth in the manufacturing industry remains at the level of 3.3%. At the same time, the mining industry decreased by 3.4%. As a result, on the whole, the index of the physical volume of industry amounted to 99.2%,’’ Dalenov noted.

In the manufacturing industry in the context of regions, the highest growth is noted in the Kostanay, North Kazakhstan and Akmola regions. The decrease is observed in 5 regions. These are West Kazakhstan, Kyzylorda, East Kazakhstan and Atyrau regions, as well as Shymkent.

During the period under review, investments in fixed assets were attracted in the amount of 10.6 trillion tenge. Investment growth is observed in 13 regions of the country. Of these, the best indicators are observed in the Turkestan region and Shymkent. A decrease was recorded in 4 regions. These are West Kazakhstan, Kyzylorda, Atyrau and Karaganda regions.

Investments are growing, excluding the mining industry. Their growth was 17.3%.

The construction sector, according to the minister, is showing very high growth. The volume of work performed increased by 12.1%. Active construction work is noted in the Turkestan and Zhambyl regions, as well as in the city of Shymkent.

“12.1 million square meters of housing have been commissioned into operation. This is 9.3% more than in the same period last year,” Dalenov noted.

The general situation in the regional context by 7 economic indicators is as follows. According to 5 indicators, positive growth is noted in 11 regions. These are Akmola, Aktobe, Almaty, Zhambyl, Kostanay, Mangystau, Pavlodar, North Kazakhstan and Turkistan regions, as well as the cities of Nur-Sultan and Shymkent.

“I would like to note that the trade situation is improving. The green zone includes 2 regions. These are the cities of Nur-Sultan and Shymkent,” Dalenov noted.

In 3 regions, growth was recorded in 4 indicators. This is the average level. In 3 regions, positive growth is observed only in 1-2 indicators. These are Kyzylorda, West Kazakhstan and Atyrau regions.

Summarizing his speech, Dalenov noted that taking into account the measures taken to restore business activity, central and local executive bodies should focus on the following aspects.

1. Prevention of seasonal growth in prices for socially significant foodstuffs through the use of regional stabilization funds.
2. Maintaining the accumulated growth rates of the manufacturing industry and construction.
3. High-quality implementation of a pool of investment projects by local executive bodies.
4. Ensuring effective use of funds for anti-crisis measures and achievement of target growth indicators for the year.
5. Increasing the share of permanent jobs under the Employment Roadmap.
6. Full completion of the financial year and preparation of procedures for the next year to quickly transfer funds to the economy.