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RK RES: Measures to stimulate investment, GDP, housing and economic growth

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by March 11, 2021 Market

Minister of National Economy Asset Ergaliyev reported on the socio-economic development of Kazakhstan in January-February 2021 at a government meeting today. According to him, a number of sectors of the economy are growing significantly. More in the material of the correspondent of Strategy2050.kz.

According to the Minister, following the results of February of this year, the epidemiological situation is improving in many countries as a result of active vaccination. The number of patients per day decreased by 46% compared to mid-January 2021, and in Kazakhstan – by 59%.

“The decision of OPEC + countries to maintain restrictions on oil production for the next month has had a positive impact on world commodity markets. Today, the price of Brent oil is $ 67 per barrel, ”Asset Ergaliyev said.

He also noted that metal prices are recovering. The average increase in metal prices this year was 7%. Prices for copper increased by 15.8%, aluminum – by 9.4%, zinc – by 1.7%. In general, according to him, the main condition for the rapid recovery of business activity is the improvement of the epidemiological situation.

Gross domestic product

In addition, he reminded that in February this year, international rating agencies – Moody’s, Fitch Ratings and Standard and Poor’s confirmed the sovereign credit rating of Kazakhstan at the pre-pandemic investment level. According to him, the main factors confirming the sovereign credit rating of Kazakhstan in the pandemic are the high level of growth stability of the real sector of the economy, high growth potential to restore the economy and income, flexibility and effectiveness of anti-crisis measures, as well as significant fiscal reserves.

“In this context, international rating agencies forecast the growth of Kazakhstan’s GDP by 2021 at 3.2-3.8%. In January-February this year, macroeconomic indicators showed a positive trend. Excluding the mining industry, growth in the real sector accelerated to 6.3%, “the Minister said.

He also noted that investments in fixed assets, excluding the mining industry, increased by 13.3%. Annual inflation remained at 7.4%. According to him, except for the mining industry, all sectors of the real sector have shown steady growth. These are construction, water supply, manufacturing, electricity and agriculture. At the same time, the information and communication sector grew by 9.4%.

“As a result, the GDP growth rate improved from minus 4.5% in January this year to minus 2.9% in January-February,” Asset Ergaliyev said.

Manufacturing industry

In addition, the Minister noted that stable growth has been maintained in the manufacturing industry. Growth accelerated by 21.2% in mechanical engineering, 22.9% in construction materials, 14.1% in chemicals, 14.2% in plastics, 19.9% in clothing. in furniture production by 15.7%, in pharmaceuticals up to 9.2%. The highest growth was observed in car assembly at 19.6%.

“Manufacturing industry is growing rapidly. The increase was 6.1%. 14 regions showed positive growth. The highest growth is observed in Almaty and Almaty region due to increased production of tobacco products and electric batteries, and in Nur-Sultan due to increased production of ready-mixed concrete, refined gold and railway locomotives, “he said.

According to the Minister, the decline in the manufacturing industry is observed in 3 regions. In particular, in Atyrau region due to a decrease in the production of refined products, in the West Kazakhstan region due to a decrease in the production of meat processing and transformers, in Turkestan region due to a decrease in the production of transformers and cotton.

At the same time, he noted that work is underway to attract domestic and foreign investment. Excluding the mining industry, the average investment growth was 13.3%.

He also noted that investment in fixed assets in many sectors of the economy is growing rapidly. Significant growth of investments was shown by information and communication – 2.1 times, manufacturing – 85%, transport – 56%, agriculture – 40%, trade – 31%, construction – 25% and real estate transactions – 18%.

“Many regions are showing high investment activity. The highest rates are observed in Shymkent due to the growth of construction of industrial facilities and production facilities, Zhambyl region due to the reconstruction of national roads, Turkestan region due to the construction of solar power plants and multifunctional tourist complex, “the Minister said.

Investment

According to the Minister, 4 regions show a decrease in investment. Due to the reduction of construction and installation work on the Karachaganak field expansion project in the West Kazakhstan region, due to the reduction of construction and installation work on the Tengiz field expansion project and wellhead pressure management project in Atyrau region, due to reduced investment in fixed assets of industrial enterprises in Pavlodar region and multifunctional Due to the completion of the construction of a hotel and tourist complex in Mangistau region there was a decrease.

“The construction sector is showing high growth rates. The volume of construction work performed increased by 9.7%. Due to the growth of construction of cultural and sports facilities, apartment buildings and engineering structures in Turkestan region, due to the construction of health and mining facilities, engineering systems in Akmola region, due to the construction of health facilities, apartment buildings and roads in Shymkent. “, – said Asset Ergaliyev.

According to him, due to the reduction of work on the construction of the main pipeline in the West Kazakhstan region, in Zhambyl region due to the reduction of work on the construction of roads, bridges and industrial facilities.

Commissioning of housing

According to the Minister, 1.9 million square meters of housing were commissioned in January-February this year. This is 12.8% higher than the same period last year. He reminded of the need to maintain this momentum to ensure the commissioning of 17 million square meters of housing planned for 2021.

“All regions have shown positive growth. The highest rate of housing commissioning is 4.6 times in Shymkent, ”the Minister said.

Agriculture

According to the Minister, stable growth was observed in agriculture at 3.1%.

“There is a positive trend in 13 regions. Akmola region showed the highest growth due to increased production of beef and poultry, cow’s milk. At the same time, due to the decline in chicken egg production, a decrease was registered in Atyrau and North Kazakhstan regions, “he said.

Measures to stimulate economic growth

To implement the set tasks, the Minister suggested that the central and local executive bodies pay attention to a number of measures to stimulate economic growth.

1. As part of the further development of infrastructure, it is necessary to urgently launch a season of active construction work under the programs “Nurly Zher”, “Nurly Zhol” and “Employment Road Map”, the project “Auyl – El Besigi”.

2. In order to stimulate business activity, it is necessary to provide effective access to financing and demand markets, effective implementation of immediate and effective measures to reduce the burden on small and medium-sized businesses. These measures were taken on March 4 this year at a meeting of the State Commission for the Restoration of Economic Growth.

3. As we can see, the real sector is resistant to adverse external conditions and has a high potential for qualitative economic growth. Therefore, it is necessary to actively implement projects on the map of industrialization and import substitution in the agricultural sector.

4. It is necessary to take special control to prevent the rise in prices for socially important food products, ensuring the active saturation of the market with food products.

5. The basic condition for qualitative and sustainable development of the economy is the active attraction of investments and real work with investors.

Source: Kazakhstan 2050

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