Kazakhstan economy growth for 10 months amounts to 4.9%
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Results of social and economic development and execution of the republican budget for Jan-Oct of this year were considered at the Government session chaired by Prime Minister of Kazakhstan Alikhan Smailov, primeminister.kz reports.
As the Minister of National Economy Alibek Kuantyrov reported, during the reporting period the growth rate of Kazakhstan's economy reached 4.9%. Positive dynamics in the real sector amounted to 3.8%, in services sector 5.4%. Among the sectors of the best indicators demonstrate construction, trade, information and communication, as well as transportation.
The growth rate of investments in fixed assets reached 12.6%. Their inflow increased in such spheres as transportation and warehousing by 58%, health care by 40%, trade by 38%, education by 18%, agriculture by 8.7%, industry by 8.3%.
According to preliminary results, in Jan-Sept. foreign trade turnover of the republic increased by 2.4% to $102 bln. Exports amounted to more than $57 bln, including exports of processed goods $18 bln, imports of goods more than $44 bln. The positive trade balance of the RK is equal to $13 bln.
According to Vice Minister of Finance Dauren Temirbekov, for 10 months the state budget received 15.5 trillion tenge of revenues, the plan was fulfilled by 98.3%. In particular, the republican budget was replenished by 10.5 trillion tenge, local budgets by 5.1 trillion tenge. At the same time, the state budget expenditures were executed by 98.2%, the republican budget by 99.4%, local budgets by 97.2%.
Prime Minister emphasized that the country's economy has adapted to difficult conditions and maintains growth rates. In particular, a positive trend is shown by the real sector, which continues to be a factor of stability of the economy.
Thus, the machine-building industry grew by 27%, including the automotive industry by 42%, the mining industry - by more than 6% due to the growth of oil and natural gas production, the manufacturing industry grew by over 3%.
Significant growth was recorded in the light industry by almost 12% due to an increase in the output of textile products. The production of plastic products increased by 5.5%, foodstuffs by 3% and beverages by almost 2%.
High rates at the level of 12.5% were ensured in the construction sector over 13 million square meters of housing were commissioned. In the services sector, the growth is observed in trade by more than 10%, communications by 8% and transportation by 7%.
In general, positive dynamics is noted for all major indicators in the regions of Abay and Zhetisu, West Kazakhstan, Kyzylorda regions and in the city of Almaty.
All regions by the end of this year should ensure the achievement of target indicators of socio-economic development. An important factor of economic growth is attraction of private investments. This is our priority task," Alikhan Smailov noted.
He pointed out that state bodies and regions need to work on attracting investment, as well as to ensure the implementation of planned projects.
The head of state has set a task for each medium-sized enterprise to expand production 2-3 times. It is necessary for responsible government agencies, akimats together with the National Chamber "Atameken" to take specific measures to implement this order," Prime Minister said.
According to him, in general, business should be more actively supported in the expansion of existing production facilities and creation of new enterprises.
As Head of the Government noted, due to timely measures taken in the republic it has been possible to reduce inflation to 10.8%. At the same time, to achieve the goal of reducing inflation by 2 times by the end of the year, state bodies and akimats need to ensure the implementation of all planned steps in the framework of the Set of measures to control and reduce inflation.
There are 1.5 months left till the end of the year. It is necessary to maintain the trajectory of economic growth, to ensure the achievement of all targets," Alikhan Smailov concluded.
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Kazakh deputy criticizes performance in mechanical engineering sector despite funding infusion
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Kazakhstan has been funneled 285 billion tenge in the mechanical engineering sector from the republican budget in the past three years, Kazinform News Agency correspondent reports.
285 billion tenge has been allocated to the mechanical engineering sector from different sources (the Development Bank, Industrial Development Fund, KazakhExport) over the past three years. In 2023, 13 thousand vehicles were made using the small node assembly method in 2023, which is a 9.7% of the overall vehicles produced last year. It is expected that the figure will rise to 64% by 2027, said Majilis deputy Nurtai Sabilyanov, while noting the low performance rate given the support provided by the state.
The deputy stated that many industrial companies acquire vehicles and equipment only (780 projects or 49.5%) with the support received from the Industrial Development Fund, which has nothing to do with the development of the industrial sector.
Moreover, according to the industry review of the National Bank, a weighted average capacity utilization in the manufacturing industry stood at a mere 51.1% in the fourth quarter of 2023. This raises a question of whether annual capital infusions in new projects are reasonable, said the deputy.
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Kazakhstan recovers 40bln tenge of illegally acquired assets
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Today was held a regular meeting of the Commission on the return to the state of illegally acquired assets under the chairmanship of Prime Minister of the Republic of Kazakhstan Olzhas Bektenov, primeminister.kz reports.
The Commission approved agreements on the voluntary return of illegally acquired assets to the state for a total amount of more than 40 billion tenge, of which more than 38 billion is cash, as well as a business centre in Astana worth 2 billion tenge. The returned funds will be used for social purposes, including the elimination of the consequences of floods.
In addition, the signing of investment agreements worth 7 billion tenge was approved, under which two infrastructure facilities will be built in Astana and Shymkent by persons who fell under the Law of the Republic of Kazakhstan "On the return of illegally acquired assets to the state’" The realisation of these projects will create jobs and provide an additional inflow of tax revenues.
The work on the return of assets is a direct realisation of the policy of the Head of State on the restoration of social justice. All returned funds are used for the benefit of the people of Kazakhstan," Olzhas Bektenov emphasised.
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Kazakhstan turns to high-value added manufacturing with building polyethylene plant it Atyrau region
Images | primeminister.kz
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the heads of the world's largest oil and gas chemical companies – President of China Petrochemical Corporation (SINOPEC) Zhao Dong and Chairman of the Board of SIBUR LLC Mikhail Karisalovб primeminister.kz reports.
The key issue is the joint construction of the first integrated gas chemical complex for polyethylene production at a cost of about $7.7 billion and a capacity of 1.25 million tonnes per year, which will account for 1% of the world's total capacity.
A tripartite protocol was signed during the meeting, officially finalising SINOPEC's entry into the project. The ownership structure of the plant is as follows: KazMunayGas 40%, SINOPEC 30%, SIBUR 30%.
Head of the Government emphasised the importance of the project due to its focus on the production of high value-added products.
A gas separation complex (GSC) will be built at the Tengiz field to supply the "Polyethylene" project with feedstock (ethane). The capacity of the GSC is 9.1 billion m3 of dry gas processing per year, of which 1.6 million tonnes of ethane is expected to be produced.
Ethane will be sent through the main pipeline from Tengiz to the Karabatan site (territory of FEZ NINT, Atyrau region), where the polyethylene plant will operate.
It is planned to produce about 22 grades of polyethylene using American licence technologies of Chevron Phillips and Univation, 40% of which will be premium grade. A wide range of applications for both industrial and household purposes makes polyethylene the most popular polymer in the world.
Polyethylene is used in the fields of medicine, prosthetics, defence, food industry, construction, space industry and others. This polymer is used in the production of a wide range of goods: from plastic wear-resistant pipes, construction materials, medicines, syringes, prostheses to bulletproof vests, clothing for astronauts and car parts. Target markets include Kazakhstan, CIS countries, China, Turkey and European countries. At the same time, for domestic consumption, the realisation price will be lower than the import price.
The Head of State has identified deep processing of hydrocarbons as one of the key areas of development of the oil and gas sector. The priority for our economy is high conversion production producing products with a rapid increase in added value in the technological chain with an export orientation. The added value between the initial feedstock ethane and the third conversion product polyethylene increases 20 times, from $80-90 to $1600-1800 per tonne. The Polyethylene project will certainly give a serious impetus to the development of both the manufacturing industry and the country's economy as a whole. According to experts' calculations, the contribution to the country's GDP by 2030 from the implementation of the project is estimated at approximately 1.2%," Olzhas Bektenov said.
The construction of the plant is planned to be completed by 2029. During the construction period more than 8 thousand jobs will be created, during the operation period about 850 jobs will be created.
It was noted that the project is realised with the support of the Government. The plant will be built on the territory of a special economic zone with the provision of appropriate infrastructure and special tax regime. In this regard, Prime Minister emphasised the attention of the project participants to the need to maximise the use of local potential.
We on the part of the state provide comprehensive support in the implementation of projects important for the country's economy. At the same time, we expect you to increase the share of local content. For this purpose, it is necessary to determine the list of goods and equipment that will be mandatorily purchased from domestic producers. Special attention should be paid to training of Kazakhstani specialists and transfer of competences. It is important for us to maximise the attraction of local personnel, including for management positions in the project. We count on a similar approach in the implementation of other joint projects," Prime Minister emphasised.
Thus, in addition to the plant "Polyethylene" it is planned to build a gas separation complex and a trunk pipeline.
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