Government summarizes results of socio-economic development of Kazakhstan for the first quarter of 2017
Under the chairmanship of the Prime Minister Bakytzhan Sagintayev, the Government reviewed the results of socio-economic development of Kazakhstan for the first quarter of 2017.
Minister of National Economy T. Suleimenov reported that negative external risks for the economy of Kazakhstan, which were especially acute in the first half of 2016, have been completely exhausted. In this regard, we can note the completion of the period of adaptation of Kazakhstan’s economy to the new external conditions and entry into the trajectory of recovery growth.
According to preliminary data, in the first quarter the country’s GDP grew by 3%, where for the same period last year there was a slight decrease. Drivers of economic growth were industry, construction, transport and trade.
Positive results are demonstrated by industry, which increased by 5.8% against its decline in the corresponding period of 2016 by 0.8%. The mining industry in the beginning of the current year has moved from the zone of negative values to positive and continues to set trends in the dynamics of industrial production.
During the reporting period, the volume of production increased by 5.6% against the decrease of 1.5% in the same period in 2016 due to increased oil production by 5.2%, iron ore by 11.4% and coal by 17.4%.
Processing industries that serve intermediate and final demand, in January-March showed growth rates significantly outperforming last year. Growth in processing was 6.5%. The growth was achieved due to increased output in metallurgy by 7.1% and production of food products by 3.4%, in oil refining by 17.2%, and machine engineering by 1.8%.
Positive impact on GDP dynamics was also provided by increased production in agriculture by 2.9%. In addition, construction continues to be the driver of economic growth. During the reporting period, the volume of construction work increased by 7.1%, commissioning of residential buildings increased by 25.3%.
High demand for construction work, including through the construction of infrastructure projects within the framework of “Nurly Zhol” and “Nurly Zher” State Programs positively affects investment activity. Investments in fixed assets increased by 3.1%.
Source: Government of the Republic of Kazakhstan