Kazakhstan’s economy grows 4.1% in five months, economy minister says

ASTANA – Kazakh GDP grew 4.1 percent in January-May compared to the same period in 2016, said Minister of National Economy Timur Suleimenov during a June 13 government meeting.

Photo credit: kapital.kz

Photo credit: kapital.kz

Over the same period, inflation was 3.3 percent. Inflation in annual terms dropped to 7.5 percent compared to 16.7 percent in May 2016. Monthly inflation in May this year was 0.5 percent.

According to Suleimenov, the volume of investments in fixed assets increased 5.2 percent, with 5.5 percent growth in January-April and 3.1 percent growth in January-March. The growth is explained by the implementation of industrial, innovative and infrastructure projects within the Nurly Zhol (Bright Path) state programme and the State Programme of Accelerated Industrial and Innovative Development (SPAIID).

In January-April 2017, significant growth in investments was observed in agriculture  up 26.3 percent up to 47.2 billion tenge (US$150 million) and real estate transactions up  13.5 percent up to 251.8 billion tenge (US$796 million).

Average nominal income of the population in January-April 2017 was 308,400 tenge ($975) and increased 8.2 percent in nominal terms compared to the corresponding period  in 2016, a real increase of 0.5 percent.

Unemployment rate reached 4.9 percent in April 2017.

Suleimenov said that in January-May, there was a positive dynamic in industry (growth of 7.8 percent), construction (5.1 percent), transport (3.7 percent), agriculture (2.7 percent) and trade (2.6 percent).

Industrial production volume in January-May 2017 increased 7.8 percent. The growth was significantly affected by the extraction of coal and lignite, oil, metal ore, refined petroleum production and the metallurgical industry.

In mining and quarrying, production increased 9.2 percent due to an increase in coal and lignite production of 18.4 percent, natural gas of 10.2 percent, non-ferrous metals of 11.7 percent, oil of 9.5percent and iron ore of 8.6 percent.

In manufacturing, the increase was 6.8 percent due to growth in pharmaceutical production by 36.8 percent, textile production by 29.2 percent, food products by 8.3 percent, refining by 7.2 percent and metallurgy by eight percent. Furniture production grew by eight percent, paper and paper products by 5.6 percent, and non-metallic mineral products by 4.5 percent.

In the regions, industrial production growth was observed in 13 regions; a decrease took place in three regions. The highest industry growth rates were indicated in oil-rich Atyrau (18.6 percent) and West Kazakhstan (14.9 percent) regions. The largest decline was recorded in the Kyzylorda oblast (2.9 percent).

Gross agricultural output growth reached 2.7 percent due to an increase in livestock production of 2.8 percent.

The volume of construction work increased 5.1 percent.