Number of large Kazakh businesses declining

ASTANA – The number of large businesses in Kazakhstan decreased from 2,300 to 2,200 in the past year. Large companies closed in six regions of the country, reported finprom.kz.

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Nineteen large enterprises in Almaty ceased activities during the reporting period, which ended in May. The number fell to 488 compared to 507 a year earlier.

Similarly, 18 large companies closed in South Kazakhstan, four in the Almaty region.

“Despite a serious decrease in the number of companies, Almaty remains the centre for concentration of large business – the city’s share in the number of operating large enterprises is 43.9 percent. Next comes Astana with 11.9 percent. The Turkestan region (former South Kazakhstan region) covers 7.9 percent of the total number of large businesses in Kazakhstan,” according to the report.

The construction field saw the largest number of closed companies, falling to 132 compared to 148 a year earlier.

The manufacturing industry is also losing large enterprises, with the number reduced by 13 units to 236. The agriculture, forestry and fishing industries decreased by eight units to 62 large farms.

The biggest concentration of large companies is in the healthcare and social services sector, with 530 units representing 23.7 percent of all Kazakh industry. The report noted 261 enterprises, or 11.7 percent, are in the state administration, defence and compulsory social security areas. Manufacturing has 236 large companies, a 10.6-percent share.

The decline in large company activity has been observed in the last three years, as the number of large businesses decreased by 140 units from May 2015-May 2018.