Kazakhstan’s economy is growing faster than expected, Prime Minister Massimov announced on January 22, saying the country’s real gross domestic product, the measure of all goods and services produced in the economy, increased by 1.1% in 2009, compared to 2008.
The Prime Minister shared the news as he submitted the Government’s annual report to President Nursultan Nazarbayev in a meeting at Ak Orda presidential residence in Astana.
“There are not so many states that witnessed economic growth in 2009. A great deal of them faced the problems of increasing external debts, budget deficiency and unemployment. Many companies from across the globe had to go out of business, while our economy has been gradually recovering. Due to consistent work we were able to reduce unemployment, cut the inflation and intensify our efforts in implementing the Road Map state program”, the President said at the meeting, which also focused on priority tasks for the country’s future development.
The announcement of GDP growth number means that the year’s outcomes exceeded the government’s own initial expectations of 0.5% declared at the end of the year by the Ministry of Economy and Budget Planning.
The volume of overall economic output amounted to 8.9 trillion KZT increasing by 1.7% from the same period of a year earlier (US$ 1 equals to 148 KZT). Capital investments grew by 2.1% and reached almost 4.5 trillion KZT. The pace of change increased as the year went on, resulting in the National Fund’s accumulations reaching almost 270.6 billion KZT. Over the same period Kazakhstan used up almost all of budget finances. The total state revenues amounted to nearly 3.5 trillion KZT.
The report also indicated the inflation rate was mere 6.3%, the lowest point in the country in the last ten years.
Meanwhile, the rate of unemployment equaled to 6.3%, attesting to the efficiency and relevance of the Road Map governmental program and the strenuous fight with unemployment in the country. Due to the program, the state managed to significantly cut unemployment’s rate, the third quarter of 2009 indicating the lowest figures over the last few years.
Deputy Prime Minister Yerbol Orynbayev said Kazakhstan expects unemployment in 2010 to hold within the range of 6.1-6.3%. According to official data, the rate of unemployment in December of 2009 equaled to 6.3% in comparison with 6.5% of a month earlier.
“Situation at the labour market will remain sustainable. The Road Map governmental program and several other breakthrough projects implemented at the moment will substantially facilitate the task,” he said at the meeting.
This is a positive move considering Kazakhstan, like other countries across the world, was hard hit by the economic downturn during 2008 and early 2009. These latest GDP figures have exceeded the target set by the government, the report stated.
Meanwhile, the government announced their most conservative forecast of a 1.2.-2% GDP growth in 2010. According to their estimates, the industrial output of Kazakhstan will reach 3%, the same rate of mining and manufacturing industry will hit 4% and 1.4% accordingly.
“In the meantime, we are ready to a certain decline in agriculture due to a known cyclical nature of harvesting. On the other hand, favourable conditions on the world commodities market will advance the growth of our export sector and transporting services,” Orynbayev added.
The Russian investment company VTB Capital predicts Kazakhstan’s GDP to grow 2.3 percent in 2010.
“In 2009, Kazakhstan’s GDP has increased by 1% contrary to the expected decline by 0.3%. High prices for raw materials determined the growth of GDP in the country. As for the year 2010 we expect the GDP growth of 2.3%,” said a report from the company.
Overdue loans remain a serious concern for Kazakhstan’s banks. However, as stated by the company’s analysts, the banks will overcome the problem as early as in the first half of 2010, and they are expected to successfully continue restructuring their debts in the same year.
President Nazarbayev believes Kazakhstan should continue its consistent economic development in 2010.
“Last year our economy unlike many other countries of the world has not seen those rampant severities of the crisis. However, it is not a reason to moderate our pace. In 2010, we are facing similar challenges to say the least,” the President said at the meeting. “2010 should be a year of Kazakhstan’s entering a new stable phase of development, following our strategic program of state development until 2020.”
.JPG)
