Kazakhstan’s foreign trade turnover reaches US$96 billion
Kazakh Minister of National Economy Ruslan Dalenov spoke at the reporting meeting with the population about economic trends, priority areas and achievements of Kazakhstan.
Dalenov said that in 2019 the growth of the gross domestic product (GDP) amounted to 4.5 percent, the increase in inflation rate stood at 5.4 percent, and the income of the population in real terms rose by 6.5 percent. Fixed asset investment increased by 8.5 percent. Export amounted to US$58 billion (or 23.2 trillion tenge). In total, foreign trade turnover reached nearly US$100 billion (40 trillion tenge).
Dalenov also announced the economic results for the last four months. He noted that in the global economy there has been a decrease in business activity since the beginning of this year due to lockdown restrictions amidst the COVID-19 pandemic. Dalenov also emphasized that the market conditions for the main commodities are in the decline.
“Following the results of the four months of this year, the results of the country’s socio-economic development are as follows: GDP decreased by 0.2 percent, while the production of goods increased by 5.8 percent and production of services decreased by 4 percent. As a result, GDP as a whole fell by 0.2 percent. The growth of fixed asset investment in real terms amounted to 0.9 percent. This number is lower than the last year. However, positive dynamics remains. New approaches are being developed in order to attract new investments,” Dalenov said.
Kazakh Minister of National Economy shared the innovations that will be introduced in 2020. The new microcredit line will be launched in June. Subsidies will be issued up to 5 million tenge (US$12,500) for working capital and up to 20 million tenge (US$50,000) for production needs. He said that this will cover a wide range of representatives of the microbusiness sector. The sources of financing will become the own funds of banks and microfinance organizations. The approval procedures were promised to be simplified.
“The ‘Business Roadmap 2025’ state program will be supplemented by the new direction called “Microlending of small and microbusinesses”. The lending will be available at the interest rate of no more than 6 percent through subsidies. Currently, the rates on such loans are high,” Dalenov said.
‘Public Participation in the Budget Process’ is another new initiative. Kazakh citizens who have interesting ideas will be able to receive state funding. The project will be implemented this year in all Kazakh cities of regional significance. It will become one of the tools for increased citizen participation as part of the responsive government concept.
“This mechanism works as follows: there will be a competition of ideas. Residents of a particular district can propose a project to the its governor’s office through a special web portal. The applications received are analyzed and then an open vote ‘one resident – one vote’ is held. Based on the voting results, the expert community determines the priority of the project for funding. The website of the governor’s office of the district publishes all of the results of the voting on each project, including the photo, status and authors of the project,” said Dalenov.
Currently, the project is already being implemented in a pilot mode in eight districts of Almaty, as well as the Saryarka district of Nur-Sultan. Last year, the local authorities approved 69 projects from Kazakh citizens. The projects were related to the improvement of yards and sports grounds.