NUR-SULTAN – Kazakh government officials noted positive economic indicators over the past 11 months and reported them during the Dec. 10 government meeting, the Kazakh Prime Minister’s press service reported.
Construction and processing industries show significant growth, said Kazakh Minister of the Economy Ruslan Dalenov.
The processing industry grew by 3.3 percent, where pharmaceuticals and car construction increased the most by 39.5 percent and 52.6 percent respectively.
“The underlying drivers of positive dynamics remain investment in non-extractive sectors, economic lending, real sector growth and rebounded growth in services, as well as ongoing measures to support the economy,” said the minister.
The service sector, which suffered the most from the coronavirus outbreak, is also showing positive signs.
“The November figures show a recovery in the services sector. Particularly, trade increased by 17.1 percent, arts, entertainment and recreation by 17 percent, technical activities by 15.9 percent, accommodation and catering services by 10.5 percent, administrative services by 10.5 percent, educational services by 7.6 percent and communications by 4.5 percent,” said Dalenov.
Over the past 11 months, the state budget received eight trillion tenge (US$19.1 billion) exceeding the planned budget by 4.7 percent, while the national budget received 5.224 trillion tenge (US$12.5 billion).
Speaking at the meeting, Kazakh Energy Minister Nurlan Nogayev said that oil and gas condensate production amounted to 78.5 million tonnes over the past 11 months, exceeding the nation’s plan by one percent.
Tengizchevroil which operates Kazakhstan’s major Tengiz and Karachaganak fields produced 24.3 million tonnes of oil, and the North Caspian Operating Company that covers Kazakhstan’s giant Kashagan field as well as Kairan and Aktoty produced 13.9 million tonnes of oil.
Nogayev also spoke about the recent meeting of the Organization of the Petroleum Exporting Countries (OPEC), where the countries agreed on a modest production increase of 500,000 barrels per day starting January 2021.
“This decision was taken for January 2021 only. Decisions for the following months will be taken from January 2021 onwards at monthly meetings with OPEC+ ministers taking into account the current situation in the oil market,” said the minister.
In April, OPEC and non-OPEC allies agreed on a record slash in oil production amounting to 7.7 million barrels per day, or ten percent of global oil output after a slump in global oil demand amid the coronavirus outbreak.
In January 2021, under the agreement, Kazakhstan will cut production by 1.417 million barrels per day opposite the current cut of 1.397 million barrels.
In 2020, Kazakhstan plans to produce 85 million tonnes of oil, down from the initially planned 90 million tonnes.
Nogayev said his ministry is developing a draft government decree to limit oil and gas condensate production in certain subsoil areas in 2021, which will affect the forecast for oil and gas condensate production in 2021.