Minister of National Economy Timur Suleimenov reported today on the preliminary results of socio-economic development of Kazakhstan for 2017 during the Government meeting chaired by Prime Minister Bakytzhan Sagintayev.

The main outcome of 2017 for Kazakhstan’s economy was the intensification of recovery processes with the country's progressive shift towards higher growth rates, Timur Suleimenov noted. According to the preliminary results of 2017, GDP growth was 4%.

The main catalysts for growth were the expansion of production in the trading sectors, increased investment activity and the gradual recovery of domestic demand. Positive external conditions included higher price conjuncture for oil and metals, as well as improvement of the economic situation in main trading partner states - the EU, Russia and China. According to the results for 11 months, exports to Russia grew 33%, to the EU - 31% and China - 34.9%.

Despite the outstripping growth of extractive industries, the source of GDP growth was mainly the non-raw-material segment of the economy. Thus, within the structure of the 4% GDP growth, the non-oil sector takes 60%. In general, the real sector recorded a synchronous increase in production in virtually all sectors of the economy.

The greatest growth is observed in manufacturing at 7.1%, transport - 4.8%, communications - 3.3% and trade - 3.2%. The fastest pace was demonstrated by the mining industry due to growth in oil production.

The processing industry shows a five-year maximum growth rate of 5.1%, which is mainly facilitated by the implementation of projects within the framework of the Industrialization Map.

In January-November 2017, 62 projects for the amount of about 850 billion tenge were introduced through IIDSP and 5.5 thousand jobs were created.

The Minister particularly emphasized the rapid development of the pharmaceutical industry, the output of which increased 41.8%. Light industry increased production by 7.3% due to the launch of 9 investment projects and an increase in the Kazakhstan content of backbone companies.

The increase in demand gave additional impetus to chemistry, metallurgy, oil refining, and the food industry, where growth was 7.2%, 5.9%, 5.1% and 4.1%, respectively.

In addition, the machine building industry recorded a sustained recovery growth of 5.6%. In agriculture, growth was 2.9%: output of plant growing increased 2.2%, livestock - 3.9%.

The large-scale exhibition "EXPO-2017" attracted a significant number of tourists who increased demand in the domestic market, expanding the opportunities for SMEs in the retail segments, restaurant and hotel business and the whole service industry.

In 2017, the volume of investments in fixed assets increased 5.5%. In the first 11 months of 2017, the main growth in investments was directed to agriculture, where growth was 29.3%, trade - 21.8%, construction - 11.8%, communications - 9.5% and industry - 3.8%.

In the 9 months of 2017, Kazakhstan attracted more than 15.7 billion USD of gross foreign direct investment, which is 5.3% more than the same period in 2016.

In general, the country's foreign trade turnover increased 25.1% to 69.5 billion USD.

"Sustained economic growth was accompanied by an improvement in social indicators. Thus, data for 9 months of the reporting period shows that the number of employed citizens increased by 53.1 thousand people and amounted to 6.4 million people as of October 1. This allowed keeping unemployment at a low level of 5%,” – T. Suleimenov summed up.

The banking sector’s preliminary results for the year were announced by Chairman of the Board of the National Bank Daniyar Akishev. A report on the preliminary results of the execution of the National budget for 2017 was made by Minister of Finance B. Sultanov.

Summing up, Prime Minister Bakytzhan Sagintayev noted that according to preliminary data, in 2017, the President's task to achieve a 4% economic growth was fulfilled. Branch Ministries and regions ensured economic growth within their indicators. This indicator was achieved due to the well-coordinated work of the Government and Akimats.

Published: 11 January 2018



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