Real Sector of Kazakh Economy Has Continuous Positive Growth, Says Economy Minister

NUR-SULTAN – The real sector of the Kazakh economy has experienced continuous positive growth due to production increase in construction, agriculture, and manufacturing over the first eight months of 2020, said Kazakh Minister of National Economy Ruslan Dalenov during a Sept. 9 government meeting.

Construction increased 6.5 percent, agriculture – 4.9 percent, and manufacturing – 3.3 percent.

“The real sector also shows good indicators of competitiveness,” Dalenov said. “The automotive industry increased 51.8 percent, pharmaceutical production – 34.1 percent, finished metal products – 18.8 percent, paper products – 15.3 percent and light industry – 11 percent,” said the minister.”

Kazakhstan’s gross domestic product (GDP) had a 3 percent decrease. The economic decline mainly associated with 6.1 percent decrease in the service sector. The production of goods counterbalanced the indicator with an 1.7 percent increase over the same period.

Recently, Standard and Poors rating agency confirmed Kazakhstan’s sovereign credit rating at the level of BBB-/A-3 with a stable outlook.

Kazakhstan significantly increased its exports of processed goods. In January-July, the national car export experienced a seven-fold increase, ferrosilicon – six-fold, sunflower oil – nearly doubled, titanium ingots – 20.5 percent. Kazakhstan exported to 105 countries in the first eight months. Annual inflation has slowed to 7 percent.

The foreign trade turnover totalled $48.7 billion over the first seven months. Of which, exports accounted for 58.7 percent. The trade surplus remains at $8.5 billion. Industrial production increased 0.4 percent due to the growth of the manufacturing industry by 3.3 percent. The mining industry decreased by 1.5 percent. The Kostanai and North Kazakhstan regions, and Nur-Sultan showed the biggest growth.

Pharmaceuticals, finished metal products, mechanical engineering, including the automotive industry, and light industry demonstrate high growth rates.

Meanwhile, fixed capital attracted 7 trillion tenge (US$16.44 billion) investments. Thirteen regions showed growth. Investments in the Akmola, Turkestan regions, and Shymkent increased by nearly a third.

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