What does 0.1% GDP growth mean for Kazakhstan? – view

What does 0.1% GDP growth means?

First, positive GDP growth frees us from borrowing funds and saves us from debt increase because of budget deficit.  When budget revenues rise due to tax payments, it lets the budget be more balanced and cover the expenses.

Secondly, positive GDP growth enables the Government to maintain its social commitments, in particular, to socially disadvantaged groups of  population. This, in turn, allows to continue supporting certain groups of population.

Thirdly, the growth of GDP lets  employ more people, since sectoral programs are aimed at creation of constant job places. It is crucial to create and increase productivity of employment to let people understand that this is not a seasonal factor and not a short-term Governmental measure.

The growth of GDP promotes  attraction of foreign investors too.

According to the expert, Kazakhstan’s economy faces certain difficulties now caused by unfavorable foreign conjuncture, but the Government and the National Bank have offered various programs such as Nurly Zhol, the Anti-Crisis Plan and 100 Specific Steps National Plan. All of these measures enabled the country to quickly respond to negative foreign factors and achieve positive results in the first half of 2016.