It gives grounds to believe Kazakhstan economy is on the trajectory of sustainable development. Undertaken by the Government steps within the anti-crisis program and for building the foundation for post-crisis development proved fruitful, and the session tallying up socioeconomic development characteristics in six months of 2010 PM Karim Masimov said they inspire optimism.

Grown real sector

In H1 the industrial production has grown by 11%, as stated by the minister for economic development and trade Zhanar Aitjanova. Accrual in processing industry makes 18,3%, which it largely owes to engineering branch, where the increment is 67,8%; in chemical industry it is 67,5%, food industry – 14,6%.

As says the progress report made by the vice-minister of industry and new technologies Albert Rau in H1 the industrial businesses’ produced the output worth around 5,5trn tenge. The volume index is 111%. The best-performing regions are Kostanai, South-Kazakhstan, Pavlodar oblasts and Almaty.

The best performing branches are mining industry whose produced output is the sum of 3,4bn tenge, processing branch -1,7trn tenge. In physical terms textile, chemical, pharmaceutical and metallurgic industries show the biggest accrual .Uranium extraction in H1 made 8 452 tons, which makes Kazakhstan a world leader in it.

Out of the slated 144 investment projects 72 were launched in 2010 H1 worth in total 396bn tenge, another 72 worth the sum of 359bn tenge are due in 2010 H2.

Zh. Aitjanova admitted however that investments in the basic capital in the time in question are 4,8% lower than in 2009. Least attractive sectors for investment remain processing industry, wholesale and retail trade, transport and storekeeping. But the share of businesses’ and organizations’ own means in the investment structure at that went up to make 45%

Accommodation construction works, stimulated by a special state program for this area are showing a good pace too. The volume of cargo carriages upped by 16,8%.

Big support to small business

As part of anti-crisis measures the government takes steps for business climate improvement. The partner-banks have issued 2 515 loans the sum of 144,7bn tenge.

The “Roadmap for business-2020” is suited to this end too. Work goes on for decrease of administrative hurdles to the SMSB. All the undertaken support measures helped improve their performance characteristics, raising the output volume by 61% against the same last-year term.

Bigger demand for consumer commodities is traceable, which boosted retail trade volumes (by 13%). Kazakhstan export positions, the MEDT leader says, have restored thanks to the changed price conjuncture in the world commodity markets. In the five months of the year Kazakhstan’s external trade turnover made $34,4bn, which is 39,8% more than in the same last-year term.

With launch of the Customs Union of Kazakhstan, Russia and Belarus from this January a single customs tariff is applied and unified measures of non-tariff regulation. Kazakhstan is applying preferences on 409 positions.

Inflation as expected

Meanwhile inflation as of the year-end is expected within 6-8%. In H1 it was marked at 4,4%, as stated by the NB deputy-chairman B.Tadjiakov. The situation in the internal currency market is described as stable and pricing conjuncture on Kazakhstan’s main export positions – as favorable.

As stated by the MEDT the country’s international reserves have grown in the accountable term by 5,7bn tenge to make $53,1, including the National Fund’s assets in foreign currency that make $26,5bn. The situation in the banks’ liquidity has improved that as of 2010 H1 went up to make nearly 2trn tenge. The NB leadership is confident that their monetary policy measures will help hold the inflation in the set benchmarks.

The figures cited by the finance minister Bolat Zhamishev are: 2trn 36mn tenge of budget receipts in 2010 H1, or 93,7% to the planned, expenses at that making 2trn241bn tenge, or 93,4% to the plan on payments in the accountable term, budget deficit – 204,5bn tenge. He also exemplified objective and subjective reasons for not disbursed budget.

Enough grain

Average harvest is expected, - The PM said , -with the harvest failure in the country’s west balanced by sizeable yields in other regions. A special task group, led by the agriculture minister A.Kurishbayev will take measures to help the grain farmers of the drought-hit regions, prolongation of credit repayments in the first place, and bringing grain to the disadvantaged regions from the north.

The PM says the country will have enough grain to sustain affordable price on bread for the population.

A 3,1% production accretion in agriculture was stated as of H1 of the year that accounts for a 3,3% growth in husbandry. The branch owes its positive characteristics to a sizeable state support, by “KazAgro” holding too.

The agriculture minister suggested setting up local stabilization grain funds, especially in the regions hit by the drought, signing deliveries memoranda with the grain regions, and to seek out means for procuring the Prodcorporation’s grain to help stabilize prices on bread. -On the whole, he went on, factoring in the expected harvest yield and the carryover storage the home market demands in grain will be met with the export potential saved too. Work at cattle selection and its epizootic safety will be continued.

To mitigate the drought impact in the regions 400 thousand tons are to be taken from the northern to the western regions, credit repayments to the grain producers of the disadvantaged regions should be prolonged. To save the livestock it is offered to allocate means from the Government reserve for the fodder cheapening, to create a reserve seed stock of the “Prodcorporation” JSC. Concurrently local executive bodies are to seek out means to subside the cost of seeds procured by the producers.

Better life quality

The industrialization program and the roadmap helped bring down the unemployment rate to 5,8%, as stated by the labor and social protection minister Gulshara Abdikalikova. -40 thousand unemployed were put to retraining and training programs, 60 thousand – sent to public works, 33 thousand – placed in social jobs, 21 thousand graduates – to youth practice. In 2010 H1 over 140 thousand new jobs opened, nearly half of which – in rural districts.

The fruits of the roadmap are apparent. It involves 3 398 projects, including utilities, road and social facilities’ repairs and winterization. The hands engaged in the roadmap projects are paid on average about 34 thousand tenge.

From 1 April budget employees had a 25% wage rise, social expenditures were raised too, which took 53,8bn tenge of the budget means. Work is going on in the ministry for raising pension payments and benefits, upgrade of social services.

The pension savings system shows dynamism, according to the labor and social protection minister. State guarantees for the pension savings’ safety are in effect since last year, for which the outpaid sum in the last year made 527mn tenge that helped protect the interests of 13 thousand pension savings’ holders.

Basing on sociological surveys the PM assumes Kazakhstanis’ social well-being after the economic crisis is tangibly improving, although ample work is yet ahead.

Accommodation to interest holders

Support to participatory construction was another topic covered, on which the performance report was presented by “Samruk-Kazyna” deputy-chairman Arman Dunayev. -The tools applied to settle the problems in it, he said,- are finalization of construction sites through second-tier banks and buyout of rental housing through the estate Fund of Samruk-Kazyna.

By-date two objects are commissioned, and on the contracts 3 283 participatory construction interest holders will have their accommodations.

Tallying up the session the PM said this-year H1 characteristics inspired optimism, but there are another 6 months of the year ahead. In mid-August targets for it and possibly the 2010 budget will be specified.

-We have our hands full: the OSCE summit, Aziada, the AIID program, the roadmap for business-2020, education, healthcare, employment and languages development programs.

Rysty Alibekova

Photo: Victor Fedyunin