Kazakhstan's GDP plunges during COVID-19 quarantine

Business Materials 22 June 2020 12:13 (UTC +04:00)
Kazakhstan's GDP plunges during COVID-19 quarantine

BAKU, Azerbaijan, Jun. 22

By Nargiz Sadikhova - Trend:

Kazakhstan’s GDP has decreased by 1.7 percent over the course of first five months of 2020, Kazakhstan’s Prime Minister Askar Mamin said, Trend reports with reference to the press office of the prime minister.

He made the statement during a joint meeting of members of the parliament's both houses.

He noted that the highest economy growth of Kazakhstan in last six years was recorded in 2019 when Kazakh GDP increased by 4.5 percent. At the same time, 85 percent of the overall economy growth accounted for development of non-commodity economy sectors.

The main drivers of economy growth were processing industry (grew by 4.5 percent), construction (by 12.9 percent), transport (by 5.1 percent) and trade (by 7.6 percent). Investments into fixed assets increased by 8.5 percent, including private investments the value of which increased by 9.5 percent.

Foreign trade turnover in 2019 was $97 billion, the foreign trade surplus amounted to $19 billion. Inflation amounted to 5.4 percent maintaining within the target corridor.

The labor market has remained stable. The unemployment rate was 4.8 percent. The minimum wage increased one and a half times in 2019.

In turn, Kazakhstan’s GDP decreased by 1.7 percent over first five months of 2020. At the same time, growth was ensured in the basic sectors of the economy. The production of goods grew by 4.8 percent.

“The main task of the country’s government during current times is to create necessary conditions for the economy to reach positive growth rates. With this in mind, large-scale measures are being taken to maintain socio-economic stability in the country,” Mamin said.


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