Kazakh GDP Shrinks By 2.6 Percent in 2020, Says Kazakh Economy Minister

NUR-SULTAN – The Kazakh economy shrank by 2.6 percent in 2020 as it takes a heavy hit from the coronavirus pandemic, said Kazakh Minister of National Economy Ruslan Dalenov. 

Photo credit: primeminister.kz

State support measures, growing investment activity in the non-extractive sectors, real sector growth and increasing in lending supported the economy throughout 2020, said the minister. 

“The outcomes of 2020 lay the firm foundation for economic growth this year,” he added. 

The real sector grew by two percent in 2020, while the services sector that suffered from the coronavirus restrictions contracted by 5.6 percent. 

In 2020, Kazakhstan commissioned 15.3 million square metres of housing demonstrating a record 16.8 percent growth compared to 2019. The Kazakh capital Nur-Sultan leads in housing construction. 

The information and communication sector also showed an 8.6 percent increase, agriculture – 5.6 percent, processing industry – 3.9 percent and education – 2.3 percent. 

“The share of processing in the total volume of the industry has increased by 9.4 percent from 39.4 percent in 2019 to 48.8 percent in 2020. There has been a double-digit growth in light industry, engineering and production of ready-made metal products. Exports of processed and finished goods have also increased. Thanks to the growth in the production, the share of Kazakh goods in total consumption grew by 4.7 percent,” said Dalenov.

Online shopping rose by six percent and cashless payments increased by half. 

One and four hundred million citizens received support in employment in 2020, including 238,000 people as part of the employment road map. 

“700,000 business people received tax breaks. 80 percent of borrowers had their loans deferred. Nearly 40,000 business projects were financed at a lower rate,” said Dalenov.

The nation’s social and economic development in 2020 will be discussed in more detail at an upcoming expanded government meeting with Kazakh President Kassym-Jomart Tokayev. 

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