Kazakhstan sees growth in volume of attracted investments - Ministry

Kazakhstan Materials 11 March 2021 10:42 (UTC +04:00)
Kazakhstan sees growth in volume of attracted investments - Ministry

BAKU, Azerbaijan, Mar.11


The key condition for the recovery of business activity in Kazakhstan is normalization of the epidemiological situation (related to COVID-19), Minister of the National Economy Asset Irgaliyev said at the government meeting, Trend reports on Mar.11.

"In February of this year, the international rating agencies Moody's, Fitch Ratings and Standard and Poor's confirmed the sovereign credit ratings of Kazakhstan at the pre-pandemic investment level,” Irgaliyev noted. “The main factors for confirming the country's credit ratings amid the COVID-19 pandemic are a high level of sustainability of growth in the real sector of the economy, the potential for recovery growth of the economy and incomes of the population, flexibility and efficiency in the formation of anti-crisis measures, as well as significant fiscal reserves. Against this background, the international rating agencies predict GDP growth in Kazakhstan in 2021 at the level of 3.2-3.8 percent.”

According to him, from January through February 2021, the country’s macroeconomic indicators showed a positive tendency. Growth in the real sector, excluding mining industry, accelerated to 6.3 percent. Fixed capital investments without the industry rose by 13.3 percent. Annual inflation remained at the level of the previous month - 7.4 percent.

"All segments of the real sector - construction, water supply, manufacturing, electricity and agriculture, except mining, showed steady growth. The information and communication sector increased by 9.4 percent. As a result, the GDP growth rate improved from minus 4.5 percent in January to minus 2.9 percent from January through February of this year," the minister stressed.

The growth rates in mechanical engineering was up to 21.2 percent, production of building materials - 22.9 percent, chemical products - 14.1 percent, plastic products - 14.2 percent, clothes - 19.9 percent, furniture - 15.7 percent, and pharmaceuticals - 9.2 percent. The indicators in the automotive industry rose by 19.6 percent.

With regard to attracting domestic and foreign investment, the average growth in investment excluding the mining industry was 13.3 percent.

Besides, according to the minister, investments in the field of information and communications showed notable growth - by 2.1 times, while investments in the manufacturing industry rose by 85 percent, in transport - by 56 percent, in agriculture - by 40 percent, in trade - by 31 percent, in construction - by 25 percent and in real estate transactions - by 18 percent.

Most regions showed high investment activity. The best indicators were noted in the city of Shymkent due to the growth of construction of industrial facilities and the purchase of production equipment, in the Zhambyl region - due to the reconstruction of the highway of the country's importance, in the Turkestan region - due to the construction of solar power plants and a multifunctional tourist complex.

Furthermore, the volume of completed construction work increased by 9.7 percent. High growth was observed in the Turkestan region - due to an increase in the construction of cultural and sports facilities, apartment buildings and engineering structures, in Shymkent city - due to the construction of healthcare facilities, apartment buildings and highways, in the Akmola region - due to the construction of healthcare facilities and mining, engineering systems.

The growth in agriculture made up 3.1 percent. Positive dynamics has been observed in 13 regions. The highest growth was shown by the Akmola region - due to an increase in the slaughter of livestock and poultry, and the production of raw cow's milk.

In order to fulfill the assigned tasks, the central and local executive bodies need to take measures to launch a season of active construction work, efficiently implement urgent measures of direct action, implement projects of the Industrialization Map and import substitution in the agro-industrial complex, prevent price increases for socially significant foodstuffs, active investment attraction and targeted work with investors, Irgaliyev said.