Economic Results of Kazakhstan
Kazakhstan’s GDP growth in 2019 has exceeded the expected level, rising above four percent. Experts said that this is largely due to the increase of production volumes and development of the services sector. The non-resource sector has made the largest contribution to the GDP growth.
According to the Kazakh Ministry of National Economy, industries have maintained a growth trend. In the first 11 months of 2019, the volume of production has increased by 3.6 percent. The growth of manufacturing sector has reached 3.8 percent due to the development of mechanical engineering and pharmaceutical industries. The growth in the mining industry remained at 3.7 percent. Construction has showed high growth dynamics - the volume of construction projects has increased by 12.1 percent. Meanwhile, the services sector shows the increase in business activity. The volume of trade has increased by 7.5 percent.
“So initially we estimated that growth of Kazakhstan would this year be something lower than last year. Maybe 3.8% would be the growth that could be achieved this year. But then we received results of the 3 quarters of this year and we noticed that just in the first 3 quarters it grew by already 4.3 percent. And so we revise upward our growth prospect for Kazakhstan. Actually our economic research department has put this increase growth rates for GDP of Kazakhstan to 4.1 percent for this year. I believe that still Kazakhstan can grow even higher,” said Country Director of Kazakhstan Resident Mission of ADB, Giovanni Capannelli.
Investment activity remains an important factor for the country’s economic growth. Since the beginning of 2019, almost 40 new foreign investors have invested in Kazakhstan. Over the years of independence, US$330 billion have been invested in the local economy from 120 countries. There are almost 17,000 companies with foreign capital operating in the country.
“We operate in the electronics sector. We have invested in the Far East and Germany. Nine months ago, we decided to invest in Kazakhstan. Your country has created favorable conditions for investors through the three-tier system. We plan to launch an electronic security system as soon as possible in banking, trading, mobile and other sectors,” said Turkish investor, Mustafa Yavuz.
The SME sector has also made a significant contribution to the economic development. By end of November this year, the number of SMEs in Kazakhstan has increased by 7.8 per cent per year, which is up to a total of 1.3 million.
Experts noted that the country managed to maintain stable economic growth despite the slowdown in world trade and external economic factors mainly due to the implementation of industrialization programs as well as attraction of investments and support to the SME sector.