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GDP growth reached 4.1%: Government of Kazakhstan reviews results of socio-economic development for 10 months

by November 13, 2018 General

Minister of National Economy Timur Suleimenov reported that in January � October 2018, the economy of Kazakhstan maintains a positive growth trend.

GDP growth in the reporting period amounted to 4.1%. The main factors of economic growth were high investment activity, a slowdown in inflation, as well as an increase in production in the basic sectors of the economy, said the minister.

According to Suleimenov, investment demand is growing at a confident pace. Investments in fixed assets increased by 20.8%. Industrial production maintains a steady growth trend. The increase amounted to 4.7% with the outpacing growth of the manufacturing industry over the mining industry.

The outstripping growth of processing is due to maintaining the momentum in key processing industries. This is engineering, oil refining, chemistry and metallurgy. The mining industry increased by 4.6%. The growth is due to the increase in production of iron ore, coal and lignite, natural gas, oil and non-ferrous metal ores, Suleimenov explained.

The dynamics of the construction industry has stabilized at 4.1%.

The growth is associated with an increase in the construction of residential buildings, industrial facilities, the reconstruction of roads and the modernization of the Shymkent refinery, said the minister.

In addition, according to the ministry, simultaneously with the expansion of the real sector of the economy, the output of the non-trade sector is increasing. The production of services grew by 4%. The main contribution was made by trade (7.2%) and transport (4.5%).

Foreign trade keeps the trend of steady growth. For eight months, there is an increase of 21.6%. Exports increased by 28.2%. This is mainly due to the higher rates of supply of petroleum, agricultural products, petroleum gases, aluminum and copper ores.

The situation in the labor market is still favorable. Since the beginning of 2018, 414,500 people have been employed. Wages are growing at a moderate pace. In January � September, the average monthly salary increased to 158,200 tenge. Increase in real terms by 1.9% have been estimated. Real money incomes against the background of wage growth and slowdown of inflation processes in January � August 2018 increased by 3.5%.

The Chairman of the National Bank Daniyar Akishev reported that inflation in October 2018 was 0.4%, which is lower than the expected forecast. As a result, annual inflation fell to 5.3% versus 7.7% in October 2017. This is the lowest annual inflation rate since 2015. Low inflation rates at the end of 2018 make it possible for annual inflation to persist in the 5-7% corridor.

In October, the National Bank decided to increase the size of the base rate from 9% to 9.25%. The established size allows to increase the demand for tenge and assets, as well as maintain convenient conditions for cash loans. Deposits of businesses and individuals in the first nine months of 2018 increased by 0.8% compared with the corresponding period 2017 and amounted to 17.6 trillion tenge.

Also Akishev reported on the progress of the implementation of the 7�20�25 Program. The program is carried out by seven banks. As of Nov. 8, 2018, banks have approved 2900 loan applications for 35 billion tenge. The National Bank conducts explanatory work among the population. There is a call center around the clock. In the near future, a project called Preliminary Knowledge will be launched on the basis of Baspana Company, which will allow each Kazakhstani person to assess their opportunities for participation in the program online.

Minister of Finance Alikhan Smailov, in turn, reported on the results of the state budget execution for 10 months 2018. Thus, over the reporting period, the performance of revenues (without transfers) compared to the same period in 2017 improved at all levels of the budget. The growth rate of state budget revenues amounted to 117.5%, the republican budget � 120.6%, and local budgets � 110.4%.

Budget execution has improved. Non-utilization of the state budget compared with the 10 months of 2017 decreased by 58 billion tenge, of the national budget � by 21 billion tenge and local budgets � by 40 billion tenge.

Smailov informed that the percentage of execution on expenses is better than the figures of the previous year. State budget expenditures were executed by 98.2%, the republican budget � by 98.7%, and local budgets � by 98.3%. The republican budget expenditures amounted to 7,788 billion tenge. Asfor not executed 100 billion tenge: budget savings � 13 billion tenge, 87 billion tenge � not mastered.

Methodological, technical and other assistance is being provided to state bodies to resolve issues related to the development of budgetary funds. The Ministry of Finance, together with central and local authorities, holds selector meetings. As a result of this work, individual administrators and local executive bodies identified budget programs with the risk of non-development. Currently, work is being carried out with administrators to redistribute up to 10% of annual sums of budget programs in accordance with budget legislation. The results of the work will be known Nov. 15, 2018. In addition, the Ministry of Finance has proposed that officials of these administrators be brought to disciplinary responsibility.

Smailov noted that the priority task for the fourth quarter is, first, a balanced use of budget funds. To do this, together with government agencies, all necessary documents are accepted in a timely manner and budget procedures are carried out to implement the revised republican budget for 2018. Second, in November 2018 central and local authorities should prepare preliminary public procurement plans for implementing the republican budget for 2019 �2021. Third, from November 2018, administrators should begin announcing tenders for 2019 public procurement at the expense of budgets of all levels.

Having heard the report of the Minister of Finance, the Prime Minister noted that he supported the proposed measures for the disciplinary punishment of officials of the program administrators which failed to utilize the allocated funds. Sagintayev instructed to continue work on the withdrawal of untapped funds and return them to the republican budget. Meanwhile, in the 2019 budget, it is necessary to take a closer look at those activities and goals for which non-mastering occurred.

Minister for Investments and Development Zhenis Kassymbek reported that in the first 10 months of 2018, industrial output amounted to 104.7%, including mining � 104.6%, manufacturing � 105.4%. Positive industrial production is maintained in 14 regions.

In the mining sector, iron ore production increased by 8.1% as a result of production increase at Sokolov-Sarbai Mining Enterprise JSC. The volume of non-ferrous ores reached 103.8%.

In the manufacturing industry, growth is observed and the achievement of annual targets in the sectors: engineering � by 14.2%, chemical industry � by 8.5%, furniture production � by 3.9%, paper � by 6.4%, rubber and plastic products � by 2.1%.

For the transport complex, the physical volume index for the first 10 months was 104.5%. Kassymbek reported that the planned annual figure will be achieved by increasing the volume of transit containers and increasing gas exports to China.

The physical volume index for construction was 104.1%, the planned figure was achieved. Positive dynamics is observed in 13 areas. According to the results of 10 months, 9.8 million square meters of housing was commissioned in housing construction, which is 111.6% compared to the same period of 2017. In total, 85,990 housing units were commissioned in the republic, including 30,704 individual houses. The increase in housing construction in comparison with last year continues in 14 regions of the country.

In general, Kassymbek noted that by the end of 2018 it is planned to achieve planned values in all sectors supervised by the Ministry.

Minister of Energy Kanat Bozumbayev reported that over the 10 months of 2018, the main indicators of the fuel and energy industry showed a positive growth trend. Thus, the volume of oil and condensate production amounted to about 74.5 million tons, showing an increase of 4.7% compared to the corresponding period of 2017 and 3.5% of the plan for 10 months.

Oil production in three major projects amounted to 44.3 million tons, including 10.7 million tons at the Kashagan field, 23.4 million tons at the Tengiz and 10.1 million tons at the Karachaganak. At that, export oil amounted to 59.8 million tons of oil, which is 3.6% more compared to the same period in 2017, the Minister of Energy informed.

The volume of oil refining amounted to 13.5 million tons of oil, showing an increase of 9% over the same period in 2017, and above the plan by 2.2% over 10 months of tons. The volume of production of petroleum products amounted to 9.5 million tons, showing an increase by 7.9% compared to the same period of 2017, and by 3.6% to the plan for 10 months.

In general, the situation on the oil products market is stable, there is no shortage of fuel and lubricants. As of November 9 in Kazakhstan, the average retail price for gasoline AI-92 is 155.9 tenge, diesel fuel � 192.7 tenge. The amount of residues of fuel and lubricants is enough to cover the needs of the domestic market: the reserves of gasoline AI-92 � 272 thousand tons, diesel fuel � 121 thousand tons, reported Bozumbayev.

According to the Ministry of Energy, due to the disparity of retail prices for petroleum products at gas stations of the country compared to neighboring countries, there is evidence of high consumption of fuel and lubricants by transit transport in the border areas. So, for comparison, the retail price of gasoline brand AI-92 in Kazakhstan is 155.9 tenge per liter, in the Russian Federation � 233.1 tenge / liter, in Uzbekistan � 265.4 tenge / liter, in Kyrgyzstan � 233 tenge / liter. The price of one liter of diesel fuel in Kazakhstan is 192.6 tenge, in the Russian Federation and Kyrgyzstan � 250.7 tenge, in Uzbekistan � 207.9 tenge. These factors, according to Bozumbayev, affect the cost of diesel fuel in Kazakhstan.

Currently, the shipment of diesel fuel to agricultural producers with a plan of 394,400 tons amounted to 383,900 tons or 97.3% of the plan. In accordance with the application of the Ministry of Agriculture the need for diesel fuel is fully satisfied. For a stable heating period 2018�2019. The fuel oil supply schedule to social-production facilities and institutions in the amount of 312,000 tons at a price of 80,000 tenge per ton have been approved. Shipment is carried out on a priority basis in accordance with the payment.

Gas production amounted to 45.7 billion m�, showing an increase of 4.9% compared with January � October 2017, or 6.2% more than the plan for 10 months 2018. Gas export amounted to 16.8 billion m�, which is more than the same period in 2017 by almost 21%. 2.5 million tons of liquefied petroleum gas were produced, which is 6.5% more compared to the same period 2017.

Oil bitumen production amounted to 772 thousand tons, which is 116% compared to the same period in 2017 and 106% to the 2018 plan. Electricity generation amounted to 87.4 billion kWh, which is 5.2% more compared to the same period in 2017. .

In conclusion, Bozumbayev noted that the achievement of the main indicators is under constant control and monitoring of the Ministry of Energy. In the fourth quarter 2018, the fuel and energy industry will continue its dynamic development.

The First Vice Minister of Agriculture Arman Yevniev reported that the physical volume of gross agricultural output over 10 months was 102.5%, including crop production � 101.6% and livestock breeding � 103.9%.

In the republic, harvesting of grain crops is completed. About 15.1 million hectares (100%) have been harvested. Nearly 22.8 million tons of grain were harvested at a yield of 15.1 c / ha, Yevniev said.

The livestock of the main animal species increased by an average of 5.7% and meat production � by 4%, milk � by 3.4%. Food production during this period increased by 2.8%.

Reporting on the execution of the republican budget, Yevniev noted that 355.7 billion tenge was allocated from the republican budget for the Ministry of Agriculture for 2018. The development plan for the reporting period (November 1, 2018) amounted to 309.6 billion tenge, 306.6 billion tenge was utilized, or 99% of the plan.

Heads of a number of regions � the first deputy akim of Almaty region L. Turlashov, akims of Almaty B. Baibek, Kyzylorda region � K. Kusherbayev, Mangystau region � Y. Tugzhanov reported on the measures taken to achieve the planned indicators.

Source: The Prime Minister of Kazakhstan