WEEKLY REVIEW. Diversification and industrial development successfully started in Kazakhstan


Muratbek Makulbekov

WEEKLY REVIEW. Diversification and industrial development successfully started in KazakhstanLess than a year passed from the date when the Government announced the completion of work to overcome the impact of the global financial crisis on the economy of Kazakhstan.

On January 24 at a board meeting of the National Welfare Fund “Samruk-Kazyna” Kazakh Prime Minister Karim Massimov announced that the antirecessionary activities of the Fund were over, and it returned to its main function of developing the country’s economy. Next day, December 25, the Government held a sitting to discus the results of the Joint Action Plan of the Kazakh Government, National Bank and Financial Supervision Agency on stabilization of the economy and financial system in 2009-2010.

The anti-crisis program of the Government of Kazakhstan, as many domestic and foreign experts noted, included really effective measures, which had a positive impact on the economy and prevented a decline in production in basic industries. Thanks to these measures in 2009 the country avoided a drop in GDP, and in 2010 achieved GDP growth of 7 percent. That was a good result, especially in comparison with the economies of other former Soviet countries. Despite the significant costs within the Anti-Crisis Plan in previous years, the international reserves of Kazakhstan in 2010 grew to around USD 59 billion.

For 2011 GDP growth has been planned at 4-5 percent, taking into account the fact that the crisis was still observed in all sectors of the global economy, and this could affect the situation in Kazakhstan. The economic policy of the Government this year was aimed at increasing competitiveness of the economy, implementation of programs aimed at economy diversification – ensuring stable employment and income growth, carrying out state programs, developing human capital, including education, health and development of languages.

In general the year of 2011, according to economists, has been most successful for Kazakhstan in the post-crisis period.

On December 28 the Government held another sitting to sum up the results of the country’s socio-economic development for 2011. According to Economic Development and Trade Minister Kairat Kelimbetov, Kazakhstan’s GDP grew by 7.5% during January-November this year. Short-term economic indicator made 7.3%. The volume of gross agricultural output has increased by 27.3 percent in January-November, 2011. Grain harvest in net weight made 26 million tons and increased 2.1 times against 2010.

Inflation made 0.6 percent in November, 2011. The inflation rate made 7 percent in January-November.

According to him, inflation was formed at the level of 7.8 percent from November, 2010 to November, 2011 and is at the planned corridor of six-eight percent at the end of the year.

The foreign trade turnover of Kazakhstan has increased by almost 40 percent over 11 months of 2011, Kairat Kelimbetov told. High rate of growth in the real sector of economy along with a favorable external environment promoted the increase of foreign trade turnover by 39.7 percent following results of January-October, 2011 and made USD 101.1 bln. Goods export increased by 48.2 percent over 11 months of 2011, import – by 22.4 percent. External surplus made USD 42.3 bln.

International reserves of Kazakhstan rose by 27.3% to make USD 75.4 bln.

Overall effect of the implementation of the Industrialization Map and Business Road Map 2020 in the current year is 2 percent of GDP. Measures to support entrepreneurship resulted in the increased production of small and medium-sized businesses for 11 months at 2.5 percent. The Government’s efforts to reduce the administrative burden on business allowed Kazakhstan to join the 50 countries with the most favorable business conditions in the rating “Doing Business”.

International reserves of Kazakhstan, in general, including the assets of the National Fund in foreign currency – USD 43.3 billion – grew by 27.3 percent to make USD 75.4 billion. Agencies Standard&Poor’s and Fitch raised sovereign ratings of Kazakhstan – respectively – to BBB+ and BBB.


* * *

Dec. inflation in Kazakhstan reached 0.3%


Foodstuff prices increased by 0.3% for the last month, prices for non-food goods by 0.4%, paid services by 0.2%, the Kazakh Statistics Agency reports.

Diesel fuel and solid fuel prices grew by 0.8% and 1.7% correspondingly.