Kazakh National Economy Minister Reports Positive Economic Indicators in First Two Months of 2021

NUR-SULTAN – Kazakh Minister of the National Economy Aset Irgaliyev reported on the country’s economic development over the past two months noting positive dynamics across the sectors, as the epidemiological situation shows signs of improvement, according to the Kazakh Prime Minister’s press service. 

During the meeting. Photo credit: primeminister.kz

The real sector, excluding mining, demonstrated a 6.3 percent growth, while investments in fixed capital grew by 13.3 percent. Inflation remained at 7.4 percent. 

“The entire real sector, with the exception of the mining industry, showed steady growth. That is, construction, water supply, manufacturing, electricity and agriculture. The information and communication sector also grew by 9.4 percent,” Irgaliyev told the meeting of the cabinet. 

Growth was also driven by an increase in engineering (21.2 percent), production of construction materials (22.9 percent), chemical industry (14.1 percent), clothing (19.9 percent), and pharmaceuticals (9.2 percent). 

The cities of Almaty and Nur-Sultan, as well as the Almaty Region are leaders in industrial production. 

The government sets ambitious goals to attract investments. The average growth in investments reached 13.3 percent. 

“Significant growth in investment has been noticed in information and communication by two-fold, 85 percent in manufacturing, 56 percent in transport, 40 percent in agriculture, 31 percent in trade, 25 percent in construction and 18 percent in real estate,” said Irgaliyev. 

Shymkent, a city of national significance, performed best within the country in attracting investments due to the increased construction of industrial facilities and industrial equipment. 

Similar dynamics have been in play in the Zhambyl Region due to the reconstruction of national roads and in the Turkestan Region due to the construction of solar power stations and numerous infrastructure projects in its new administrative centre

To facilitate economic growth, Irgaliyev urged the local executive bodies to focus on the accelerated launch of construction works as part of Kazakhstan’s Nurly Zher (bright land), Nurly Zhol (bright path) and Employment Road Map. 

Nurly Zher programme envisions the construction of affordable housing, enables Kazakh citizens to purchase housing at favourable loan rates and offers opportunities for socially vulnerable groups to improve their housing conditions. 

The Nurly Zhol programme, in turn, is an infrastructure development programme with a focus on the renovation and construction of transport infrastructure. 

“To stimulate business activity, it is necessary to effectively implement urgent measures by providing access to finance and demand markets, reducing the burden on business to support the small and medium businesses. These measures were adopted March 4 at a meeting of the state commission,” said Irgaliyev. 

Overall, Irgaliyev noted that the improvement in the epidemiological situation will be crucial to economic recovery.

In February, Moody’s, Fitch Ratings and Standard and Poor’s affirmed Kazakhstan’s outlook as stable, said the minister. 

“The main factors in confirming the country’s credit ratings amid the pandemic are the high sustainable growth of the real sector, recovery of the economy and people’s incomes, flexibility and efficiency in the development of anti-crisis measures as well as significant fiscal reserves,” said Irgaliyev. 

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