Business confidence boosts in five sectors of Kazakh economy

As of 1st July, 398,600 enterprises have been registered in Kazakhstan. This includes 243,000 or 61 percent referring to 6 priority economic sectors, of which just over half, 138,500, are operating enterprises.

The Statistics Committee of the Kazakh Ministry of National Economy notes that the level of business confidence in these sectors has significantly increased for the past six months.

The short-term economic indicator of the six key industries in January-June 2017 has amounted to 105.8pct against 105.4pct in January-April and 104.8pct in January-March this year. According to the entrepreneurs, the economic situation is expected to improve in Q3 2017.

For the past six months, the business confidence index of industrial organizations has increased from 2% to 11%, which is the peak figure for the last two years.

As per the Statistics Committee, the main factors restricting the activity of industrial enterprises are the market competition from domestic and foreign companies and lack of own resources.

The level of business confidence of construction organizations has grown 5 percentage points since the January this year and reached the maximum figures of the recent years as well. The factors that negatively affect the business activity of the construction organizations comprise 'lack of work orders', 'high cost of materials, structures, products', and 'competition from other construction firms'.

It should be noted that the construction prices have gone 4.2 percent up over the year. Every year the number of operating construction organizations increases for 4pct. Since January, the number has grown by 3pct amounting to 32,600 companies.

As for the trade, the business confidence index has enlarged by 17 percent since January this year. According to the short term survey, the economic trends in this sector are expected to improve. The sales volume has grown by 10% within six months.

Meanwhile, in Q1 2017, the economic situation in the agricultural sector has worsened as compared to the previous quarter. At the same time, only 20% of those surveyed have received the government aid. The major factors that restrict operating activities include 'lack of money', 'low purchase prices for products', 'lack of working capital', and 'worn-out state of facilities'.

Regarding the transport and communications sector, the entrepreneurs say that the economic climate is getting better. The 'market competition from enterprises', 'lack of own resources', and 'lack of vehicles' are still the major factors hampering growth for transport.  For the communications, such factors as the 'market competition from domestic enterprises', 'financial insolvency of consumers', 'lack of own resources', 'insufficient market of services', 'lack of required equipment', 'investment deficit' are indicated.