Following results of 4 months GDP growth rate to 3.7% accelerated (PHOTO)

Following the results of4 months, acceleration of growth on most branches of economy is observed. According to preliminary data, in January-April the GDP growth rate accelerated to 3.7% against the growth of 3%, which was in the first quarter of this year. This was reported by the Minister of National Economy Timur Suleimenov during a meeting of the Government of the Republic of Kazakhstan.
Astana city 16 May, 10:56

"In general, the statistics for 4 months of this year, can be noted as positive. According to preliminary data, in January-April the GDP growth rate accelerated to 3.7% against the growth of 3%, which we saw in the first quarter of this year. The key factors were consumer and investment demand, as well as expanding activity in the real sector of the economy, which helped support the dynamics of the GDP," T. Suleimenov said.

He also noted that investments in fixed assets increased by 5.5%, while a slowdown in annual inflation to 7.5% contributed to an increase in real household income by 2.4% and retail trade by 5.5%.

"The positive dynamics of  the GDP is due to a steady growth in the production (by 7.8%) and manufacturing industries (by 6.8%), construction (6.1%) and services (1.9%)," the Head of the Department noted.

In the issue of the agro-industrial complex, the Minister noted that the volume of production of gross agricultural output did not change and remained at a positive 2.9%. He also noted that food production for the reporting period increased by 5.7%, while growth in the production of beverages was 2.6%.

"Among the mining industry there is a positive dynamics in the extraction of coal and lignite, oil, and the extraction of natural gas. The key processing segments also recorded a revival in such areas as refining, pharmaceuticals, production of non-metallic mineral products, metallurgical products and machinery. At the same time, we see a reduction in production in the chemical industry. The production of chemical products decreased by 0.7%. Also, I note that construction keeps positive dynamics, an increase of 6.1%. The construction works in Pavlodar region have been growing at a dynamic pace (growth of 59.5%), in Astana (19.1%) and Zhambyl region (12.7%). Close inter-branch relations, mainly around the backbone branches of the industrial sector, positively influence the improvement of growth in the service industries," the Speaker said.

The Minister noted that on the whole for the first 4 months there has been an acceleration of growth in most sectors of the economy, adding that the continuing uncertainty in the world commodity and financial markets is the dominant factor in moderate expectations regarding economic growth in the forthcoming periods.

"In the second half of the year, those growth factors associated with the low starting values ​​of the previous year will be exhausted. Therefore, state bodies need to intensify their work, moving away from inertial approaches and responsibly approaching the solution of point growth issues in the supervised sectors," T. Suleimenov concluded.

Kairat Zhandybayev

Photo by Chingiz Kapparov