Government • 14 August, 2018

Following the results of seven months, economic growth reached 4% — Ministry of National Economy

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The GDP growth in January-July 2018 reached 4%. Ministers of National Economy Timur Suleimenov, Finance Bakhyt Sultanov and First Deputy Chairman of the National Bank Oleg Smolyakov reported on the results of socio-economic development and execution of the republican budget for 7 months 2018 at the meeting of the Government chaired by Prime Minister Sagintayev.

Timur Suleimenov reported that the main impetus to the growth of the economy was given by the weakening of inflationary pressure, high investment activity and the preservation of positive dynamics in the main sectors of the economy.

Inflation is maintained at a three-year minimum. From the beginning of the year it was 2.7%, with annual inflation of 5.9%.

As of August 1, the country's international reserves amounted to $87.7 billion, including assets of the National Fund — $ 56.8 billion, gold and foreign currency reserves — $30.9 billion.

Industrial production increased by 5.1%. The largest contribution to the growth of industrial activity was made by extractive industries. The output of the mining industry increased by 5.4%. The driving force was the oil production (6.1%), gas (6.4%) and iron ore (7.4%).

The dynamics of manufacturing industry growth is fixed at 4.9%. In the context of manufacturing industries, the highest growth is shown by machine building. The output in this industry was 16%. Growth is provided by industries with more complex production components. These include automobile industry (58.5%), the production of electrical equipment (47.2%) and electronic, optical products (45.7%).

There is a steady growth in the chemical industry (10.9%), oil refining (4.4%), metallurgy (3.6%) and paper production (10.1%).

The output of agricultural products increased by 3.5%. The growth of services was 3.8%. The segment of services is positively affected by the slowdown in inflation and increased business activity in the real sector of the economy. Against the background of low inflation, trade increased to 6.1% compared to the previous month. At the same time, production activity contributes to the preservation of transport growth at the level of 4.9%.

"Investments in fixed assets continue to expand. They grew by 23.7%. The largest increase in investments was recorded in industry — 32.7%. This is due to the modernization of the Shymkent Oil Refinery and the implementation of the project of future expansion at the Tengiz field. In total, $6.7 billion of foreign direct investment was attracted. This is by 24.4% more than the same period in 2017," Suleimenov noted.

The volume of exports increased by 21.8%, imports — by 7.8%. The outstripping growth of exports over imports caused a reduction in the current account deficit in the balance of payments. It fell by half to $1.4 billion.

According to the minister, high production activity had a positive impact on labor market indicators. Since the beginning of this year, 297,100 people have been employed. The unemployment rate was 4.9%.

"Wages are growing at a moderate pace. In January-June 2018, the average monthly salary was 157,700 tenge and increased in real terms by 2.3%. Real cash income in January-June 2018 grew by 1.0%," the minister summarized.

First Deputy Chairman of the National Bank Oleg Smolyakov informed that as of July 1, 2018, deposits of legal entities and individuals increased by 0.2% and amounted to 17.8 trillion tenge, as compared to the corresponding period of 2017. The loans issued by second-tier banks to the economy and the population as of July 1 increased by 1% (to 12.8 trillion tenge).

According to preliminary data, the foreign trade turnover for January-May 2018 amounted to $35.6 billion and increased by 18% compared to the corresponding period of 2017, including exports — $23.3 billion (an increase of 22.3%), import — $12.3 billion (10.7% more).

According to Smolyakov, in July the presidential program 7-20-25 was successfully launched. Already, 1,330 applications have been received, loans worth more than 6 billion tenge have been issued.

Minister of Finance Bakhyt Sultanov reported on the execution of the republican budget. So, based on the results of seven months 2018, the main parameters of the state budget are better executed in comparison with the same period 2017.

Income amounted to 6.264 trillion tenge or 101.9% of the plan for the reporting period. Expenditures were made for 6.466 trillion tenge or 98%. The deficit of the state budget has formed for 203 billion tenge. This is half the plan.

The state budget (excluding transfers) received 4.351 trillion tenge or 104.4% of the plan. The revenues National Bank were executed by 104.2% (3.053 billion tenge). Compared with the same period 2017, the growth rate was 116.2%. Taxes were received in the budget by 432 billion tenge more than a year ago. Such growth was mainly provided due to the value added tax — 207 billion tenge, export customs duty — 107 billion tenge.

Among the priorities for the upcoming period, Sultanov called achievement of the target indicators of the Raising Revenue Collection project and monitoring the revenue and expenditure budget for its balanced implementation.

In the course of consideration regarding the socio-economic development of the regions, Akim of the Turkestan Region Tuimebayev, Pavlodar region —Bakauov, Atyrau region — Nogayev, Astana — Issekeshev, Shymkent — Abdrakhimov, as well as deputy akim of Kyzylorda region Iskakov made reports.

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