WEEKLY REVIEW: GDP growth in Kazakhstan to exceed IMF's forecast - results of development over 11 months
Prime Minister Karim Massimov charged to continue the work on implementation of the action plan of state bodies on return of the capital and property illegally removed by the developers to foreign countries at a regular session of the Single Coordination Council on solution of shared construction problems held on Monday, December 13.
On Monday, the Kazakh Prime Minister also met with Turkish Ambassador Extraordinary and Plenipotentiary to Kazakhstan Lale Ulker. They discussed a wide range of issues on further development of the Kazakh-Turkish trade-economic relations within the framework of implementation of bilateral Treaty on strategic partnership.
On Tuesday, December 14, the Government held a telephone conference, at which results of the country's socio-economic development over 11 months of 2010 were summed up.
The GDP growth in January-September, 2010 made up 7.5 percent. As Minister of Economic Development and Trade Zhanar Aitzhanova informed, the GDP growth is expected to reach 6 percent upon the results of this year. She noted that "the forecast of the International Monetary Fund is 5.5%. Our official forecast was 5%. But we will reconsider it and I believe it will exceed 6%".
Industrial production increased by 10.5 percent over 11 months. Growth of processing industry made up 18.8 percent. This index is reached due to significant increase of output of engineering products - by 58.8 percent, metallurgic products - by 48.7 percent, chemical products - by 37.6 percent, textile goods - by 30.3 percent, food - by 13.8 percent, petroleum products - by 13.1 percent.
Minister Zhanar Aitzhanova said that the foreign trade turnover of Kazakhstan in ten months this year increased by 43.1percent and made USD 81 bln. The export increased by 52.6% making USD 51.4 bln, while the import increased by 29.1% and made USD 29.6 bln. The inflation rate decreased against January-September of 2009 and made up 7.1 percent.
Despite unfavorable weather conditions of last summer, not bad results were achieved in agriculture. Cereal crops were gathered from the area of 15.5 million hectares, more than 13.9 million tons of grain was harvested in the original bunker weight. This is sufficient for ensuring needs of the country and bringing of export potential to 7 million tons. The volume of production of grain and flour allows to satisfy needs of the internal market. The gross yield of oil crop makes up 0.8 million tons, vegetables and vine crop - 3.4 million tons, sugar beet - 340,000 tons, potato - 2.5 million tons.
The Kazakh content increased significantly in procurements of state bodies, national companies and subsoil user-companies. The total volume of purchase of goods, works and services on 87 backbone enterprises in January-October, 2010 made KZT 969.7 bln. The share of the Kazakh content in goods, works and services on these companies made 51.7 percent.
Minister of Finance Bolat Zhamishev reported that the Kazakh financial system gets rid of the budget deficit. According to him, the state budget deficit as for December 1, 2010 made KZT 491.4 bln. It is expected that it will not exceed 3.5 percent by the end of the year. Income of the state budget without regard to income of loans as for December 1 made up about KZT 3.8 bln or 100.7 percent of the plan. Following results of the year the Ministry of Finance expects overfulfillment of the plan on increase of revenues of the national budget by 6.5 percent. And tax revenues will increase by KZT 133.4 bln, or 7.1 percent.
Minister of Labor and Social Protection Gulshara Abdykalikova reported on results of the Road Map-2010 implementation. According to her, repair and constructions works were completed at more than 3 thousand facilities. The major amount of funds allocated within the framework of Road Map program - about KZT 136 billion - were spent for repair, reconstruction and building of social facilities and infrastructure. As of the 1st of December works were completed at 3,379 projects, i.e. 94% of the plan. 91% of the total volume of funds was utilized.
The Kazakh Government approved sectoral program on development of the mineral and raw material complex of Kazakhstan for 2010-2014. First Deputy Minister of Industry and New Technologies Albert Rau presented the draft program to the Cabinet at the conference. The main purpose of the program is to provide rational and integrated use and reproduction of mineral resources for active development of all industries. The realization of the program will also allow to receive an increase in reserves to the amount of 38 tons of gold, 905 thousand tons of copper, 900 thousand tons of polymetals. Albert Rau also said that about KZT 48.2 bln from the national budget is necessary for the program's financing.
Vice Minister of Economic Development and Trade Marat Kussainov informed of new direction of the Business Road Map-2020 program at an international conference entitled "Small and medium business in Kazakhstan: status and prospects" held in Astana on December 14. Within the framework of the program assistance to enterprises in the form of start-up projects, service support of the current business, entrepreneurs' internships abroad and help in establishment of business contacts with foreign partners will be rendered.
On Wednesday, December 15, the Kazakh Prime Minister took part in a presentation of consultative and diagnostic medical train "Zhardem". The specialized train was presented by Minister of Emergency of Kazakhstan Vladimir Bozhko, Minister of Healthcare Salidat Kairbekova and President of "Kazakhstan Temir Zholy" National Company" JSC Askar Mamin. The establishment and launch of the train is implemented by the Emergency Ministry, Ministry of Healthcare and "Kazakhstan Temir Zholy" National Company. The train is launched in order to deliver health care to people living in remote villages and sidings, provision of railway men and members of their families with medical care. The train is also designed for emergency care in emergency situations.
On the same day Head of the State Nursultan Nazarbayev handed over Order of the First President of Kazakhstan Nursultan Nazarbayev to Karim Massimov. "No one can argue that 19 years of independence and independent Kazakhstan is your achievement. I am happy to live in the great state of Kazakhstan. I am happy that we have such President", K. Massimov said after the awarding.
A joint meeting of the donor community, the UN and the EU with the members of the IFAS was held under chairmanship of in Almaty First Vice Prime Minister, member of the International Fund for Saving the Aral Sea (IFAS) Umirzak Shukeyev. The session was devoted to the results of the Coordination Conference of the Donors within the Third Aral Sea Basin Program.
"This is a preliminary condition of the long-term economic and social development and political stability of our countries. The key element of ecological stability in the Aral Sea Basin is sustainable usage of water resources which can be achieved through joint coordinated efforts of all countries of the region. Through recognition of interdependent importance of these problems for the future of our countries, the heads of the state-founders of the International Fund for Saving the Aral Sea set a task to the IFAS Executive Committee, the Interstate Commission for Sustainable Development and the donor community to development the Third Aral Sea Basin Program", U. Shukeyev said.
According to him, the goal of the Program is to improve the socio-economic and ecological situation in the Aral Sea Basin. Proceeding from the Joint Statement of the heads of state-founders of the IFAS adopted in April 2009 in Almaty, the IFAS Executive Committee has identified four priority directions of the Third Aral Sea Basin Program. These are promotion of integrated management of water resources, improvement of ecological situation, contribution to socio-economic development of the region as well as improvement of institutional-legal mechanisms.