Kazakhstan Anticipates 5% GDP Growth by Year-End, Reaches Record SME Contribution

ASTANA Kazakhstan is expected to achieve a 5% growth in its gross domestic product (GDP) by the year-end, said Minister of National Economy Alibek Kuantyrov at a Nov. 13 meeting with President Kassym-Jomart Tokayev, reported the Akorda press service.

Kassym-Jomart Tokayev receives Alibek Kuantyrov. Photo credit: Akorda

Kuantyrov noted that small and medium-sized businesses (SME) contribution to the GDP has reached an all-time high of 36.4%. Foreign direct investment reached $13.3 billion in the year’s first half, with a notable drop in annual inflation to 10.8% from February’s 21.3%.

Emphasizing the pivotal role of SMEs, Kuantyrov revealed that these enterprises collectively generated over 28 trillion tenge ($60 billion) in production. This sector also played a vital role in employment, providing jobs for 4.3 million individuals. In 2023, 9,000 projects were granted subsidies with a combined loan of 669 billion tenge ($1.4 billion).

Addressing regulatory enhancements, Minister Kuantyrov outlined a strategic shift in entrepreneurship policy, including establishing a registry of mandatory requirements and automating the risk management system. The aim is to halve business inspections, streamlining processes to foster a more conducive business environment.

In briefing President Tokayev, Kuantyrov provided updates on the ongoing development of new Budget and Tax Codes, investment policies, and public-private partnerships. Noteworthy plans include attracting 267 billion tenge ($574 million), rehabilitating 5,800 kilometers of networks, increasing salaries for housing and communal services workers by 50%, and reducing network wear and tear by 3.2% within the Tariff in the Exchange for Investment program.

Minister Kuantyrov underscored the substantial increase in funding from the state’s budget since the initiation of the Auyl – El besigi  (Village is the heart of the nation) program, reporting a sevenfold rise. The 2023 plan aims to implement 1,800 projects across 771 villages.

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