Economic summary

Economic summary

During 11 months of this year, the growth of short-term economic indicator totaled 105,1 %.Volume of investment in fixed assets in January-November 2013 exceeded 5 trillion tenge which in real terms is by 8,7 % more than during 11 months of the previous year. Along with this, the volume of industrial production since the beginning of the year reached the level of 16,5 trillion tenge in current prices. In real terms this is by 2,3% more than last year’s indicator. According to experts the economic growth is achieved primarily through domestic sources. The start of the year was not easy. Being a country in which the biggest share of the economy is occupied by commodity exports, Kazakhstan had to suffer the pressure of negative external factors. First of all the economic difficulties of the Euro zone which was still under the burden of foreign debt and the growing recession due to the global economic crisis as well as China where the largest part of exported Kazakh goods went. Also the global decline in worldwide oil and metals prices by 7 and 10% respectively played its role. All this provided a basis for experts to give modest forecasts of GDP growth in the range of 4-5%. The situation started to change dramatically closer to the second half of the year when the government carried out a tremendous job of optimizing the budget. Talking about the financial market the most significant news of the year was the change in top management of the National Bank of the country. On October 1st 2013 Grigoriy Marchenko leaves the bank after serving four years as its chairman. Kairat Kelimbetov was appointed as the new head of the National Bank. As noted by the bank's management - regulator will retain policies aimed at financial stability of the country, bank supervision and control of the inflation level. In November, Kazakhstan celebrated the 20th anniversary of national currency. Since 1993 Kazakhstan Tenge has changed its appearance several times and strengthened its security against counterfeiting acquiring new unique elements. Today Kazakhstan Mint is among the top ten world mints. During the history of Mint and Banknote factory Kazakh coins received 11 international awards. 6 prizes at the most prestigious competitions of the world were taken by Kazakhstan’s banknotes. The national currency also experienced a financial crisis. This year the country's international reserves including the National Fund assets in foreign currencies reached the threshold of 100 billion US dollars. In the banking sector the deposit base is still continuing to grow. Meanwhile annual inflation rate fell to 4,9%.

Monetary policy

One of the largest financial conglomerates of the world Morgan Stanley bank recognized the monetary policy of the National Bank of Kazakhstan as challenging. Tenge refers to one of the most stable currencies in the world. This is confirmed by international ratings. As previously reported, according to international ‘Doing Business’ rating Kazakhstan occupied 49th line thus entering the top 50 countries in the world with the most favorable conditions for business development. During the evaluation special attention, in particular, was paid to indicators of doing business and registering of property. According to the Doing Business-2014 report the position of Kazakhstan worsened in the fields of loans, business registration and protection of investors. Kazakhstan improved its position from 72 in 2008 to 50 in 2014. The positive trend in the ranking was due to an implemented range of complex measures of support and business development. And, if the pace of reform continues, Kazakhstan has all chances to be in the top 30 countries with the most favorable business environment. Experts say that social modernization of Kazakhstan will take place through the development of small and medium-sized businesses. The fact is that in today's world there is an increasing importance of SMEs. This is due primarily to the fact that small and medium enterprises, having flexibility and ability to adapt and reorganize themselves quickly in rapidly changing trends are the foundation and guarantee of accelerated socio - economic growth. According to experts this market has not yet been fully appreciated in Kazakhstan.



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