Knowledge–based economy development

What positive results Kazakhstan economy achieved in 2016?

In 2016, the inflationary pressures were increased, deteriorating external conditions the inflow of export earnings of basic industries was reduced. Despite the external negative factors, Kazakhstan has kept the long-term growth trajectory. figures out what results Kazakhstan has achieved in 2016 to keep the economic indicators.
Kazakhstan09 January , 12:18

At the enlarged session of the Government on September 9, 2016, Nursultan Nazarbayev noted that the new reality requires additional appropriate measures. In this regard, the Head of State raised a number of specific tasks which lead to the growth of Kazakhstan's economy.

The economy of Kazakhstan had 5 main challenges - the threat of economic recession; the threat of inflation; the risk of misallocation waste of the National Fund's reserves and the subsequent destabilization of the financial system; the threat of mass unemployment; the danger of "investment freeze" of the economy.

The threat of economic downturn was avoided.

In 2016, none of the strategic development programs were stopped or failed. So, despite the the global economy situation, we have managed to avoid a recession in the economy. According to preliminary estimates, in January-November 2016, the GDP growth was 0.8%. These measures have allowed the Government to keep inflation in a given corridor.

The volume of investments into the fixed capital of Kazakhstan increased by 4.7%. The main source of investment financing are own funds of enterprises - 3.5 trillion tenge. Significant investment growth is observed in agriculture - by 52.1% - 209.7 billion tenge.

There was 0.5% increase in the steel industry, 6.8% - in the manufacturing industry. Growth of gross agricultural output amounted to 4.5% due to increased crop production by 5.9%. The issue of animal products increased by 2.6%.

In Kazakhstan, housing construction also increased, which resulted the increase of the volume of construction works by 7.5%. At the same time, the construction field got 340.8 billion tenge in 2016, and agriculture - 224.2 billion tenge.

Kazakhstan has kept the inflation rate in a given corridor.

The Head of State stressed that it is particularly important to reduce inflation to 6-8% in 2016 and in 2017 ensuring macroeconomic stability.

According to the Ministry of National Economy, the food prices over the past year increased by 9.7%, no-food goods - by 9.5%, paid services - by 6.1%. At the same time, inflation in Kazakhstan was 8.5% in 2016.

Kazakhstan has retained and even increased reserves of the National Fund at the end of 2016.

State budget revenues in January-November 2016 amounted to 7 575.2 billion tenge and were fulfilled by 82.6% of the annual plan. Costs amounted to 7 386.1 billion tenge. This Republican budget revenues amounted to 6 256.0 billion tenge and fulfilled by 78.5%.

In addition, the assets of the National Bank amounted to $ 29.8 billion and increased by 7.0% since the beginning of the year. 

"By the end of the year, it is expected to replenish the state treasury at 830 billion tenge of additional income that will provide an opportunity to move from crisis management plan and address the current challenges to the implementation of the tasks of strategic development", - N. Nazarbayev said.

The threat of mass unemployment weakens, maintaining at 4.9%.

The government pays more attention to employment especially in the framework of the program "Employment Road Map 2020". Over 10 months of 2016 the number of program participants was about 171.7. As of November 1, 2306 projects were completed, jobs were created for more than 30 thousand Kazakhstanis, including 54.2% - of the ERM participants. As a result of the measures, the unemployment rate was 4.9%, while the self-employed decreased from 27.1% to 25.9%.

The President of Kazakhstan at the enlarged meeting noted that one of the main priorities of the Government's work is a massive business issues, entrusted with the further development of appropriate programs and tools.

"Today, the Government needs to take steps to expand microfinance. Over 60% of the self-employed live in the countryside. In this regard, within the framework of the "Employment Road Map" we have launched he new project "Employment in rural areas" in pilot mode in 5 regions and allocated 10 billion tenge. Particular attention should be paid to the development of cooperation. We have already adopted the Law "On Cooperation". I instruct the Government together with the akims to take measures for the organization of cooperatives in rural areas, which should ensure the marketing and processing of agricultural products", - said Nursultan Nazarbayev.

The threat of "investment freeze" in Kazakhstan's economy was avoided.

The Government of Kazakhstan is taking steps to further the development of the economy. So, the President suggested to prepare the State program of development of agribusiness on the basis of the program "Agribusiness 2020" before the end of this year.

The President noted that the priorities of the program should be increase the volume and diversification of agricultural production, with a focus on the most marketable products, the export of processed agricultural products, access to credit for farmers, the creation of service-harvesting cooperatives, infrastructure for primary processing, storage and marketing of products, and the introduction into circulation of irrigated land.

"Over the next five years we should put into circulation at least 600 thousand hectares of irrigated land. The Ministry of Agriculture and mayors should maintain strict control over the rational use of agricultural land. It is necessary to ensure the required volume of water due to emergency repairs and construction of new water reservoirs", - said Nursultan Nazarbayev.