Kazakhstan’s GDP growth reaches 4 percent, investment continues to increase

NUR-SULTAN – Kazakhstan’s gross domestic product grew 4 percent so far this year compared to the same period in 2018 and in the first four months of 2019 inflation has remained in the targeted corridor of 1.8 percent, Minister of National Economy Ruslan Dalenov told a May 14 government meeting.

Ruslan Dalenov. Photo credit: primeminister.kz.

“GDP growth accelerated to 4 percent in January to April and was 3.8 percent in January to March. The growth is due to activities undertaken to boost the manufacturing industry and the service sector and stable rates in construction and agriculture,” he said.

The main drivers of the economy were the construction sector, which saw an 8.4 percent increase, trade (a 7.3 percent increase), and transport (a 4.8 percent increase). The growth in trade leads in the service sector. It shows a 7.3 percent increase due to the sales of cars, auto parts, petroleum products and fuel.

“The manufacturing industry maintained its positive trend. For four months, output increased to 3.5 percent. In the first quarter, growth was 1.6 percent. The acceleration in oil refining, machine building, beverage production and pharmaceuticals increased the processing rates,” Dalenov said.

Air cargo turnover nearly doubled and road transport turnover grew by 9.7 percent.

Between January and March, foreign trade turnover was $20.4 billion. The export volume was $13.3 billion and growth of export deliveries, excluding oil and metals, reached 19.8 percent.

The investment dynamics increased by 6.7 percent and surpassed the GDP growth. As of April 1, Kazakhstan’s international reserves were $86 billion. Industrial production increased by 2.9 percent from January to April.

Inflation remains within the established target corridor of 4 to 6 percent for 2019-2020. Since the beginning of the year, the figure is a cumulative 1.8 percent. Monthly inflation in April of this year was 0.5 percent and the tenge has strengthened by 1 percent since the beginning of the year.

Some 12,830 applications were received for the country’s 7-20-25 housing programme. As of today, 7,633 applications worth 88.2 billion tenge (US$231 million) have been approved and 74.9 billion tenge issued in response to 6,380 applications.

“It is necessary not only to maintain this dynamic, but also to take measures for the further development of the economy,” said Prime Minister Askar Mamin

The main economic indicators grew in the Atyrau, East Kazakhstan, Kostanai, Pavlodar and Turkistan regions.

The Mangystau and Akmola regions and the cities of Nur-Sultan and Shymkent are set to increase their construction, investment and industry sectors.

Kazakhstan’s national budget took in 2.1 trillion tenge (US$5 billion) in the first four months of this year, representing 119.4 percent compared to last year.

The prime minister called for all budget expenditures to be dispersed efficiently.

“It is necessary to use all available reserves. We need to ensure the successful implementation of the Nurly Zhol, Nurly Zher, Industrial and Innovative Development and other state programmes. This will boost the economy,” he said.

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