NUR-SULTAN – The Kazakh economy grew 4.4 percent in the first eleven months of 2019, driven primarily by the country’s processing industry, services sector and construction, said Minister of National Economy Ruslan Dalenov at the Dec. 13 government meeting.
The 3.8-percent increase in the processing industry was stimulated by growth in car manufacturing (19.2 percent) and pharmaceutics (16.7 percent), as well as revived ferrous metallurgy production. Mining industry growth remained at 3.7 percent, reported the Prime Minister’s press service.
Housing construction has also seen a surge and positive growth. The volume of construction works grew 12.1 percent, with 11.1 million square metres commissioned during the period.
In services, trade grew by 7.5 percent; transport, 5.6 percent and communications, 4.7 percent.
“The factors driving the economic growth were increased by the production in basic industries, growing domestic demand and the development of the services sector, as well as the implementation of investment projects,” said Dalenov.
While the biggest contribution to gross domestic product growth (3.8 percentage points) was generated by the non-extractive sector, agriculture and mining contributed 0.6 percentage points.
“The trend is such that last year in October and November, the growth was 4.1 percent. 2018 ended at 4.1 percent growth. This year, in October and November, the growth reached 4.4 percent and we can assume that in December, it will not go lower. First, because the economic growth this year has an upward trend and second, because positive growth is expected in the processing industry,” he added.
Investments in fixed capital grew by 8.3 percent and the annual inflation rate reached 5.4 percent. Kazakhstan’s foreign trade turnover made $79.1 billion.
The budget has received more than eight trillion tenge (US$20.8 billion), said First Deputy Minister and Minister of Finance Alikhan Smailov. The figure exceeded plan by 101.3 percent. The growth is due to the value added tax on domestically produced goods, corporate income tax and taxes on international trade and foreign operations.
In eleven months, 12.3 trillion tenge (US$32 billion) was spent from the state budget.
“The local budget received targeted transfers in the amount of 1.521 trillion tenge (US$3.96 billion) and 1.455 trillion (US$3.78 billion) was used, or 95.6 percent. Sixty-six billion tenge (US$172.1 million) was not executed, 12 billion tenge (US$31.3 million) was saved and 54 billion tenge (US$140.8 million) was not used. The funds were not used due to delays in work schedules, provisions of services and goods delivery, failure to conclude deals and long procurement procedures,” he said.