Alikhan Smailov: Kazakhstan's economy shows strong growth

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

As the Head of the Ministry of National Economy of Kazakhstan Alibek Kuantyrov reported, during the reporting period the growth rate of Kazakhstan's economy amounted to 4.3%. In particular, the real sector grew by 2.7%, services by 5%. Positive dynamics is observed in all major sectors, with construction, information and communication, as well as trade showing the greatest growth. The inflow of investments in fixed assets amounted to 19.2%.

This year foreign trade turnover has increased by 15.7% up to $10.3 billion. Exports increased by 0.4% and amounted to $6.1 billion, including exports of processed goods by 21.5% up to $2.1 billion and imports up to $4.2 billion. Positive trade balance of the country is $1.9 billion.

According to Deputy Prime Minister, Minister of Finance Yerulan Zhamaubayev, the state budget received about 3.4 trillion tenge of income (plan fulfilled by 107.6%): 2.5 trillion tenge (100.5% of plan) to the national budget and 882 billion tenge to local budgets; plans were exceeded in all regions. At the same time the state budget expenditures were executed by 95.8%, national budget expenditures by 96.5%, local budget expenditures by 96.6%.

Prime Minister stressed that since the beginning of the year the country's economy has been showing steady growth. In particular, there is a positive and sustained dynamics in the real sector.

So, in manufacturing the production has grown by 2.5%, construction industry by almost 13%, agriculture by 4%, services by 5%. The positive tendency is registered in machine-building (31%), including automobile construction by 46%, production of locomotives and wagons by 34%. The growth in pharmaceutics was nearly 17%, chemical industry 3.5%, light industry 34%.

At the same time, food production increased by 10%, mineral products by 8%, ready-made metal products by 12.5%. Oil refining grew by 5.5%. Growth is also fixed in the sector of electricity production by 4.5% and metallic ores extraction by 2.5%.

In the reporting period for all major macroeconomic indicators positive dynamics was observed in Abay, West Kazakhstan, Mangystau, Pavlodar regions, the cities of Almaty and Shymkent. The lowest indicators were achieved in East Kazakhstan, Aktobe, Ulytau and Zhetysu regions.

"Given the external and internal challenges, it is important to maintain the pace of economic growth in the coming months. In this regard, the ministers together with the akims of the regions need to strengthen work on further diversification of the economy and creation of permanent jobs," Alikhan Smailov said. 

According to him, in order to increase business activity and qualitative development of the economy, it is necessary to intensify the attraction of domestic and foreign investments and implementation of the pool of planned investment projects. It especially concerns non-resource industries.

In addition, in order to support business initiatives in the regions, we need to ensure the further development of industrial zones and small industrial parks on the experience of Almaty and Shymkent.

"It is important to have an ongoing dialogue with business and solve all the problematic issues raised by them. The fundamental priority is to ensure productive employment and increase real incomes of the population," Prime Minister said. 

In conclusion, the Head of Government indicated the importance of continuing work on stabilization of prices for socially important food products and strengthening of financial discipline by administrators of budgetary programs.

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