Kazakhstan GDP grew 6.5 pct in Q1
Almaty. April 11. Kazakhstan Today - Kazakhstan's central bank on Tuesday forecast that the country's economy would grow by between 5 percent and 6 percent this year, Kazakhstan Today reports.
Kazakhstan's gross domestic product (GDP) grew by 6.5 percent in the first three months of 2011, Prime Minister Karim Masimov said on Monday. In the same year-earlier period, Kazakhstan's economy grew by 7.1 percent, official data show. Kazakhstan's GDP grew 7.0 percent in 2010 versus 1.2 percent in 2009, CNBC reported.
Grigory Marchenko, chairman of the central bank, also said he expected Kazakhstan's tenge currency to be stable against the dollar after its trading corridor is removed on March 20, provided there are no sharp fluctuations in commodity prices, Reuters informs.
"We think the situation in 2011 will be similar to that in 2010," Marchenko told a news conference.
Kazakhstan's economy, among the first and hardest hit by the global financial crisis, rebounded last year thanks to higher prices for its main exports: oil, metals and grain. Several Kazakh banks have also managed to restructure defaulted debt.
While official data for 2010 has not yet been published, Prime Minister Karim Masimov on Tuesday reiterated his earlier forecast that the economy had grown 7.0 percent in the 12 months just ended. Gross domestic product grew 1.2 percent in 2009.
Data published by Kazakhstan's state statistics agency on Monday showed industrial production rose 10.0 percent in 2010 versus 1.7 percent in the preceding 12 months.
Marchenko's forecast for 2011 GDP growth is higher than the 3.1 percent previously forecast by the government and closer to the 4.5-5.0 percent expansion estimated by the International Monetary Fund.
The central bank also forecasts that annual inflation, which reached 7.8 percent in 2010, will remain within a range of 6 percent to 8 percent in each of the next five years.
"If grain prices are in the region of $230-250 (a tonne) and oil prices at $80-85 a barrel, that would suit the country as a whole, as exporters would be happy and there would be no inflationary pressure from these commodities," Marchenko said.
Kazakhstan plans to return its tenge currency KZT= to a managed float on March 20 by removing a trading corridor adopted to ease the economy through the economic crisis, Marchenko said.
The corridor was introduced in February 2009 after the tenge was devalued by 18 percent. Originally set at 145-155 per dollar, it was widened to 127.5-165.0 in February 2010.
"We had a wide corridor throughout 2010 and the exchange rate was stable in the region of 147.3 (tenge to the dollar), plus or minus 0.6 tenge," Marchenko said.
Photo: profinance.kz.
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
relevant news
Uzbekistan and Kazakhstan launch E-Permit international cargo transportation system
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
National Bank of Kazakhstan maintains base rate at 14.75%
Annual inflation in February and March continued to decrease, albeit at a slower pace. Inflation expectations have slightly decreased but remain at a relatively high level. The external inflation background continues to be neutral with the ongoing trend of declining grain prices in global markets. Within the domestic economy, inflationary pressure persists due to robust internal demand and unanchored inflation expectations," reads the bank’s official statement.
In the current circumstances, there is still limited room for easing monetary policy. This space will begin to form with the stable reduction of the stable part of inflation," it said.
Monthly inflation slowed down in March to 0.7% after a spike in the previous month (1.1%), forming above the average historical values (0.6%). A similar dynamic is observed for the indicators of core and seasonally adjusted inflation - a significant reduction in March after a sharp acceleration in February," said the bank.
The external inflation background is neutral. The cost of food in global markets in March shows a slight increase, mainly due to rising prices for vegetable oils. Grain prices continue to decline against the background of the realization of the harvested crop in exporting countries and the uninterrupted operation of maritime trade routes," said the bank.
In the European Union, the trend towards slowing inflation continues against the backdrop of the European Central Bank's restrictive policy. Despite expectations of weaker economic growth indicators this year, the ECB remains committed to returning inflation to its target value and intends to maintain restrictive monetary and credit conditions for this purpose," said National Bank Governor Timur Suleimenov in an April 12 statement.
The Federal Reserve notes that inflation in the United States still remains high. In March, the annual inflation rate increased to 3.5%, accelerating for the second consecutive month. According to the Fed's rhetoric, the current monetary and credit conditions will continue going forward. In Russia - a key trading partner of Kazakhstan, inflation in March remained at 7.7%. According to the statement from the Russian regulator, achieving the inflation target involves a prolonged period of maintaining tight monetary and credit conditions," said Suleimenov.
Pro-inflationary risks are conditioned by the continuation of reforms in the area of regulated prices, the consequences of abnormal floods in Kazakhstan, and the uncertainty associated with the volumes of budget expenditures needed for their elimination," the bank said.
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
Henkel intends to develop production in Kazakhstan
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
Kazakhstan and Finland: Plans to launch 11 new manufacturing projects worth 32.5 billion tenge
By 2027, the woodworking industry plans to launch approximately 11 new productions valued at 32.5 billion tenge, creating 1400 jobs", emphasized the Vice Minister.
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
ADB: Kazakhstan's economy to grow 3.8% in 2024, 5.3% in 2025
The prospects for Kazakhstan’s economic development look positive in the medium term," said ADB Country Operations Head in Kazakhstan Iskandar Gulamov.
However, the economy’s dependence on commodities makes such growth volatile-so structural reforms are key to bolstering the country’s economic resilience and sustainability," he added.
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
One of China's leading companies plans to implement pipe and fitting production projects in Kazakhstan
Xinxing Ductile Iron Pipes" is one of China's largest enterprises, primarily engaged in casting pipes and fittings, steel melting and rolling, developing special steel pipes, and producing cast items. It boasts the world's largest pipe manufacturing plant.
Xinxing" is an integrated metal processing enterprise with an annual output of 10 million tons of metal products and 8 million tons of steel, also producing 3 million tons of pipes with diameters ranging from 80 to 3000 mm. The company's products are widely used in the engineering and utilities sector, as well as in water supply, sewage, and heating systems.
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
7th meeting of the Committee for Cooperation of the Republic of Kazakhstan - European Union in trade configuration was held
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
Kairat Torebayev discussed expansion of business cooperation with representatives of Belgium
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
Most viewed
12.04.2024, 14:20Kazakhstan and Finland: Plans to launch 11 new manufacturing projects worth 32.5 billion tenge 12.04.2024, 15:23 45846Henkel intends to develop production in Kazakhstan12.04.2024, 13:36 45621ADB: Kazakhstan's economy to grow 3.8% in 2024, 5.3% in 202512.04.2024, 10:17 44676Astana International Forum Discussed at OECD12.04.2024, 17:25 41191Head of State Tokayev chairs republican flood control headquarters meeting
20.03.2024, 20:52 112336Baige finds renewed popularity in Kazakhstan23.03.2024, 20:39 109591Earth Hour 2024 returns by providing 60 minutes of global unity around the world, in support and celebration of the planet25.03.2024, 20:19 98826Head of State sent a telegram of congratulations to the President-elect of Indonesia25.03.2024, 18:26 98636Cyprus set to open its embassy in Kazakhstan25.03.2024, 11:16 94391Olzhas Bektenov leaving note in condolence book at Russian Embassy in Astana