2010 goals for growth of welfare of Kazakhstan's citizens reached

First of all the economy of Kazakhstan showed the ability to recover quickly after the crisis. In 2009 Kazakhstan’s GDP increased by 1.1 percent. But in 2010 GDP growth hit 7 percent. As a comparison, Eurozone GDP last year grew by 1.7 percent, in Germany it was 3.6 percent.

International experts recognized high efficiency of the anti-recessionary measures taken by the Kazakh Government. Large financial injections into the country’s financial sector since 2008 helped avoid collapse of the main banks. Timely Tenge devaluation combined with tax exemptions for exporters allowed to prevent the decline in production in the primary sector - the main source of tax revenues. An unprecedented employment program has been implemented in Kazakhstan for two years. Despite the ongoing influence of the global economic crisis the program allowed to prevent mass unemployment and even reduce its level to 5.5 percent in December 2010.

The figures demonstrating the dynamics of economic development show that the country is well prepared to implement strategic plans on economy modernization. The volume of industrial production increased by 10 percent in 2010. Herewith the growth rates in processing sector made 18.4 percent, in mining sector – 5.3 percent.

152 new productions totaling KZT 801.8 billion were launched within the framework of the State Program of Industrial Innovative Development till 2015. The overall contribution of these projects to the country’s GDP growth in 2010 is estimated at the level of 2.2 percent. In whole, it is planned to implement 294 projects to the amount of KZT 8.1 trillion.

Another sign of improving economic situation is the increase of investments in the country’s fixed capital that reached KZT 4.7 trillion. In the structure of investments the share of own funds of enterprises and the population grew to 45.9 percent, while in 2009 it was 32.6 percent. This also shows positive changes in the country’s economy. The volume of direct foreign investments in non-oil and –gas sector increased to USD 1.7 billion. Thus, business climate has been improved. About 150 bilateral documents on cooperation totaling USD 9.6 billion were signed to promote Kazakhstan’s investment opportunities.

Financial situation in Kazakhstan also improved last year. The total international reserves exceeded USD 64 billion, as compared to USD 59 billion in 2009. Whereas, the national debt is USD 4.5 billion.

Budget expenditures in 2010 amounted to KZT 4.9 trillion, nearly by a trillion more than in 2009. Budget deficit made KZT 527.3 billion – 2.6 percent of the country’s GDP.

It is very important that the GDP growth in our country is accompanied by the increase in real incomes, which rose by 6.3 percent last year. Real wages in the country increased by 7 percent. Thus, as Minister of Economic Development and Trade Zhanar Aitzhanova noted, in 2010 the key tasks on further increase of incomes, reduction of unemployment rate and execution of social obligations of the state were implemented in full.

Last year agricultural production decreased in many countries, the situation in the world food markets has changed - the index of price growth was 29 percent. Price growth also occurred in neighboring Russia, which, in terms of the Customs Union, may lead to food deficit and increase in food prices in Kazakhstan. In this regard, the Government intends to reach agreements with the other members of the Customs Union on reduction of import duties on certain types of food for Kazakhstan - from 15 to 0%. This measure will be introduced temporarily - until the summer. It will help keep prices for fruit and vegetables down.

To maximally protect the population from possible increase in food prices, the government last year drafted amendments to legislation allowing to control prices for socially important food.