Kazakhstan economy grows by 5% in first half of 2023

At the Government session the results of social and economic development of the country and the execution of the republican budget for January-June this year were considered, El.kz cites primeminister.kz.

Minister of National Economy Alibek Kuantyrov reported that at the end of the first half of the year the growth rate of Kazakhstan's economy amounted to 5% (real sector 4.8%, services sector 4.9%). In all major industries are positive dynamics, with the best indicators demonstrate construction, trade, as well as information and communication.

The growth rate of investments in fixed assets amounted to 13%. Their inflow increased in transportation and warehousing by 57%, trade by 32%, agriculture by 22%, education by 21.5%, as well as in industry by 10.9%, including mining by 11.4%.

According to preliminary results, in January-May foreign trade turnover increased by 8% and amounted to $55.8 billion. Exports reached $31.6 billion, while exports of processed goods increased by 3.8% to $10.2 billion. Imports of goods amounted to $24.2 billion. In general, the positive trade balance of the republic is at $7.4 billion.

According to Deputy Prime Minister – Minister of Finance Yerulan Zhamaubayev, the state budget received more than 9.2 trillion tenge of revenues (the plan was fulfilled by 102.3%). In particular, the republican budget was replenished by 6.1 trillion tenge (94.7%), local budgets by 3.1 trillion tenge (121.7%). At the same time, state budget expenditures were executed by 99.3%, republican by 99.4%, local by 99.5%.

Prime Minister of Kazakhstan Alikhan Smailov emphasized that the main contribution to economic growth in the reporting period was made by mining and manufacturing industries, construction and services.

Thus, the growth of production in machine building amounted to almost 30%, including automobile production 40%, production of locomotives and railcars 36%, production of electrical equipment 35%. Light industry showed growth of 24%, including textile production by almost 42%. 

In the mining industry, positive dynamics was ensured by the increase in crude oil production by 5.6% and natural gas production by 2.5%. The construction industry grew by more than 12%, agriculture by 3% and the service sector by almost 5%. 

At the same time, the output of beverages, food products, plastic products, mineral products and finished metal products increased in the republic.

In general, according to the results of 6 months, Abay, Akmola, West-Kazakhstan, Kostanay regions, Almaty and Shymkent cities are the leaders in all major macro-indicators.

Meanwhile, there was a decrease in industrial production in Aktobe region (by 8.4%), Karaganda region (7%), Kyzylorda region (1.7%) and West-Kazakhstan region (almost 1%). Investments in fixed capital decreased in North Kazakhstan region (by 1.9%) and Ulytau region (0.7%).

"Until the end of the year, these regions need to take measures to correct the situation," Alikhan Smailov said. 

Head of the Government indicated that by the end of this year it is necessary to ensure the achievement of at least 5% economic growth, which will be a factor in further improving the quality of life of the population. In this regard, he noted the need to strengthen work on diversification of the economy and creation of permanent jobs.

According to him, in the conditions of global competition for investments it is also necessary to strengthen work on attracting strategic investors. And it is necessary to work directly with each of them at every stage of interaction.

Another important task is to curb price growth. As a result of the measures taken in the half-year inflation slowed down to 14.6% in annual terms.

"We have a task to reduce inflation this year by 2 times. This requires coordinated and preventive actions. The Ministry of Trade together with interested state bodies should ensure the reduction of inflation to the planned values," Prime Minister emphasized. 

In conclusion, Alikhan Smailov stressed the importance of quality implementation of the Comprehensive Privatization Plan, which in the future will reduce the share of the state in the economy of the republic to 14.4% of GDP.

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