Baku, Azerbaijan, Aug. 9
Trend:
The current account deficit has decreased by half to $1.4 billion in the first six months of the year in Kazakhstan compared to the same period last year, the preliminary assessment report of the National Bank of Kazakhstan said.
"The stable economic situation in the partner countries and the growth of oil and gas condensate production have a positive impact on the dynamics of exports," the regulator said in a statement.
The exports of goods increased by 21.8 percent to $ 28.6 billion in the reporting period.
At the same time, the growth of the domestic economy contributed to an increase in imports of goods by 7.8 percent to $16.1 billion. As a result, the trade balance improved by 46.2 percent to $12.5 billion.
"The income of foreign direct investors, which increased by 32.8 percent to $11.2 billion due to the growth of export revenues still remains the main limiting factor affecting the reduction of the current account deficit. More than half of these revenues were directed to financing of subsidiaries of Kazakhstan enterprises," the regulator said in a message.
In addition, the inflow of foreign direct investments increased by 1.5 times and amounted to $4.8 billion.
"The main source of inflow was the repayment by foreign affiliated companies of their debt obligations to Kazakh enterprises. However, this period was characterized by the payment of large dividends by non-residents in favor of Kazakhstani enterprises and by residents to foreign investors (the so-called super-dividend). Such operations are reflected in the balance of payments as the withdrawal of capital on direct investments", the regulator explained in the message.
Net capital outflow in portfolio investments amounted to $2 billion, mainly due to the purchase by KazMunaiGas Exploration Production JSC of its shares in the market and global depositary receipts, as well as purchases by residents of Eurobonds of the Ministry of Finance of the Republic of Kazakhstan in the secondary market.
The reserve assets (excluding assets of the National Fund of the Republic of Kazakhstan) have been estimated at $30.1 billion as of July 1, 2018, which covers the needs of financing of Kazakhstan's imports of goods and services for 8.2 months.