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Government reviews results of the socio-economic development of the Republic of Kazakhstan for January 2018

by February 13, 2018 Legal

During the Government meeting chaired by Prime Minister Bakytzhan Sagintayev, Minister of National Economy Timur Suleimenov reported on the preliminary results of the socioeconomic development of Kazakhstan for January 2018

According to the Minister, the high pace of economic development in 2017 has been steadily maintained since the beginning of this year. According to the results for the first month of 2018, GDP grew by 4.0% (2.4% in January 2017).

The macroeconomic environment is bolstered by the slowdown of inflationary processes. Since the beginning of the year, inflation has amounted to 0.6%, which is the lowest level since the transition to the inflation targeting regime. In annual terms – 6.8%, � Timur Suleimenov said.

During the first month of the year, the country’s international reserves increased by 1.1% to 90.1 billion USD.

In view of outstripping growth of manufacturing industry and higher growth in service areas, the contribution of the non-raw-material sector of the economy increased to 71% in GDP growth against 60% in the previous year.

Over the reporting period, the volume of production in the mining industry increased by 4.5% due to an increase in oil production by 7%, gas – by 7.2% and iron ore – by 3.8%. The driving force in the real sector was the manufacturing industry, whose production volumes increased by 6.2%.

Double-digit growth was recorded in chemical industry (16%), paper production (14%), beverages (10.5%) and furniture (10.1%). In addition, pharmaceuticals (7.9%), machinery (7.9%), metallurgy (7.4%), foodstuffs (6.0%) continue to show sustained growth, while the rubber and plastics industry achieved positive figures, with an increase of 7.3%.

In agriculture, growth was 3.7%, due to the outstripping growth of livestock production by 3.9%.

Increased business activity in the real sector continues to positively influence the services sector, the output of which grew by 3.7% against 1.4% in January 2017. Significant growth was recorded in trade at 7.5%. An increase in wholesale trade is observed for such goods as gas, oil and oil products, equipment for oil companies, workwear, machinery, pharmaceutical goods, tobacco products, grain, food products.

“In January 2018, investments in fixed assets increased by 65.4%. Significant growth was due to the modernization and reconstruction of the Shymkent refinery PetroKazakhstan Oil Products, the construction of a third generation plant at the Tengiz field, and the construction of a deep oil refining complex at the Atyrau refinery, � Timur Suleimenov summed up.

Source: Government of the Republic of Kazakhstan