Investments in Kazakhstan's economy raised by 14% per year
81% of all investments in fixed assets are accounted for by own funds of the business, Strategy2050.kz reports with reference to Finprom.kz.
For January – September this year, investments in fixed assets in Kazakhstan have increased by 14% per year and reached 8.6 trillion tenge. In general, in 2018, the amount of investments amounted to 11.1 trillion tenge. The share of investments in fixed assets of GDP amounted to 18% (16.1% - a year earlier). Attracting investments is one of the most important conditions for maintaining and building up the current economic growth rate, as well as increasing the capital intensity of Kazakhstan’s economy. By 2024, it is planned to bring the level of investment in fixed assets to 30% of GDP. To date, there is a formed pool of investment projects that will attract more than 41 trillion tenge of investments in 2020–2024.
For January – September this year, 46.9% of investments in fixed assets are accounted for by construction and major repairs of buildings and structures: the amount of investments is 4 trillion tenge. Investments in machinery, equipment, vehicles, tools and their overhaul amounted to 2.7 trillion tenge, or 31.5% of the total investment. Other expenses amounted to 1.9 trillion tenge in the volume of investments in fixed assets, or 21.6%.
Mostly, investments are financed from own funds of the business, the amount of which reached 6.9 trillion tenge, or 80.9% (a year earlier - 5.5 trillion tenge). 537.9 billion tenge was allocated from the republican budget - 18.3% more than in the same period last year (454.5 billion tenge). The amount of investments received from the local budget decreased by 5.9%, to 420.3 billion tenge. The share of borrowed funds in the structure of investments in fixed assets amounted to 5.8%, or 500.9 billion tenge (a year earlier - 598.1 billion tenge). Bank loans, in turn, decreased by 66.4% per year and amounted to 175.3 billion tenge.
In the regional context, the largest investment volume is accounted for by Atyrau region: 37.1%, or 3.2 trillion tenge (a year earlier - 2.7 trillion tenge). The city of Nur-Sultan (619.3 billion tenge) and Karaganda region (538.1 billion tenge) close the top three regions.
The TOP-5 regions also include the city of Almaty (534.6 billion tenge) and East Kazakhstan region (439.2 billion tenge).
Most of the investment in fixed assets was directed to mining and quarrying: 4.2 trillion tenge, or 48.4% of the total. This is 30.7% more compared to the corresponding period last year (3.2 trillion tenge). Meanwhile, production in the mining industry and quarrying in January-September 2019 increased by 3.1% per year, to 12 trillion tenge.
Investments in real estate transactions amounted to 1.2 trillion tenge, or 13.5%, the amount of investments increased by 13.7% over the year.
The three leaders in terms of investment also include the transport and storage sector: 766.1 billion tenge, the share was 8.9%. In January – September of the current year, the volume of transport services grew by 5.5% per year.
