Export of non-primary products and services amounted to $23 billion – Ministry of National Economy
As the Minister of National Economy Ruslan Dalenov reported, the share of exports in the country’s GDP is 40.1%. At the same time, 0.5% of GDP growth is provided by exports. The national export strategy aims to increase the export of non-commodity goods and services to $32 billion by 2022.
The export of Kazakhstani goods and services in 2018 amounted to $68.3 billion and increased in comparison with 2017 by 24.2%. Growth is primarily due to rising oil prices. Including the export of non-commodity goods and the export of services amounted to $23 billion compared with 2017, this figure increased by 4.1%. The export of services in 2018 shows a positive trend. The increase was 12.3%. The volume of exports of services amounted to $7.3 billion, Dalenov informed.
The main consumers of processed goods from Kazakhstan are China, Russia, the Netherlands, Uzbekistan, the United Kingdom, Turkey, Japan, Kyrgyzstan, the United Arab Emirates and Afghanistan. Collectively, these countries account for 75% of the exports of Kazakhstan’s processed goods in 2018.
According to the minister, the greatest contribution to non-primary exports was made by the products of the metallurgical industry. These are such goods as pipes, metal structures, rolled products, alloys, metals, etc. The next in volume are the products of the chemical industry. In this group, the bulk of exports accounted for uranium. The top three are petroleum products.
In order to increase the volume of exports of non-commodity goods and services to $32 billion, by 2022 it is necessary to increase exports: industrial goods by $5.7 billion to $20.2 billion, agricultural goods by $0.7 billion to $1.9 billion, services by $2.4 billion to $9.7 billion. It is expected that the largest export growth will be in transportation services from $4 billion to $5.3 billion and tourism � to $2.4 billion, Dalenov added.
In turn, Minister of Industry and Infrastructure Development Roman Sklyar said that in 2018 there was a positive trend in non-oil exports of Kazakhstan.
The chemical industry showed an increase of 2.6%, mineral products by 14.6%, engineering industry by 11%, food products by 7.6%, Sklyar informed.
Today, Kazakhstan exports 800 products to 120 countries. The main export goods of the manufacturing industry are ferroalloys, raw zinc, refined copper, uranium, petroleum gases, transformers and batteries.
In 2018, exports of finished products increased by 16%. At the same time, the share of exports of finished products in exports of processed products increased by 2.5 percentage points compared with 2017 and amounted to 23%. This year, non-primary exports are also expected to grow.
Minister of Agriculture Saparkhan Omarov said that the State Program for the Development of the Agro-Industrial Complex plans to increase the volume of exports of processed agricultural products to $2.4 billion in 2021. At the same time, in 2019 exports will be raised to $1.27 billion.
Last year, 3.5 million tons of processed agricultural products were exported for $1.125 billion. At the same time, for the first time last year 17 new types of processed products from 275 commodity groups of processed agricultural products were exported, Omarov informed.
The export geography of processed products has also expanded significantly. If in 2017 Kazakhstan exported processed products to 42 countries, then in 2018 � to 48. Switzerland, Japan, Bahrain, Malaysia, Bulgaria, Ghana, Lebanon were included in the list of new importing countries.
Export growth was also recorded in traditional markets: Uzbekistan � by 32.4%, Russia � by 7%, Kyrgyzstan � by 11%, Tajikistan � by 9.7%, Moldova � by 40.1%, and to new markets: China � by 57.5%, the Netherlands � 130%. Given the projected growth in exports of processed products to these markets, the volume of food production will be increased to 106.2%.
Chair of Baiterek National Holding Aidar Arifkhanov said that on behalf of Elbasy, in order to strengthen financial and non-financial support for domestic enterprises, in the next 3 years 500 billion tenge will be sent, including 470 billion tenge through the tools of Baiterek Holding. Of these, 220 billion tenge is the redistribution of previously allocated repayable funds, of which in 2019 DBK and DAMU will direct 138 billion tenge to finance export-oriented projects, in 2020-2021 � 41 billion tenge annually.
In turn, Minister of Foreign Affairs Beibut Atamkulov informed that, together with state bodies, a common understanding was developed on the division of functions, in accordance with which the Ministry of Foreign Affairs is assigned the role of coordinator of work at the external level.
The ministry is working with sectoral ministries in order to target and promote target products to foreign markets. Particular attention is paid to the expansion of trade with neighboring countries in order to consolidate and expand the product presence, which includes not only the export of industrial and agricultural products, but also construction, logistics, tourism, space, financial, medical and educational services,” said the minister.
According to Atamkulov, the work of the central apparatus of the ministry and foreign institutions of the Republic of Kazakhstan, which became the front offices for the promotion of export products, has been reformatted.
Deputy Prime Minister Zhenis Kassymbek noted that the development and increase in non-primary exports is one of the main activities of the Government. In 2019 Kazakhstan exported non-commodity goods and services in the amount of $23 billion. According to the Strategy, the goal is to increase the export of non-commodity goods and services by 2022 to $32 billion. Exports of non-primary goods and services should increase by $2.2 billion annually. There are all the tools, the budget provides funding for the next 3-4 years. Road maps will be developed during the month. They will be approved by the specific activities of government agencies, the timing of their implementation, responsible performers.
Source: The Prime Minister of Kazakhstan