Economy recession forces Kazakhstan to rely on its own

/REUTERS, Astana, August 7, 08/ - Decreasing of main export commodities prices and economy recession will force Kazakhstan to rely on its own while rendering social liabilities, the Prime-Minister of Kazakhstan Karim Masimov said on Thursday. "We suppose that after Olympic Games in Beijing we'll see economy recession on developing markets...So, we supposeЕ prices fall on basic export products, such as oil and main metals" - Masimov said during round table on new Tax Code discussing, which is planned to introduce in Kazakhstan since January 2009. "We plan oil and main metals price to fall and very low" - he added. In Kazakhstan due to growth of energy resources prices, positive balance of the current account was formed for the first time during last years - $6.7 bn. for initial 6 months of 2008, against deficit in $2.4 bn. by results of same period of last year. Growing world prices on hydrocarbon also contributed to increase of trade balance, which in January - June increased to $17.9 bn. from $7.0 bn. in initial 6 months of last year. Export growth for this period made 60.7 %. Majority of international experts forecast economy crisis in Kazakhstan and economy recession till zero level. Kazakhstan government as a whole by results of 2008 is expecting the deceleration of economic growth to 5.3 - 5.5 % compared to 8.7% in 2007 and considers that during the nearest three years GDP growth rate will make not less than 6.0 %. "We suggest decreasing of economy growth in developed countries...growth either will be minimal or we'll see recession on western markets", - Masimov said, adding that Kazakhstan won't be able to count on foreign borrowings. "We must render our (social) liabilities, which government takes, counting firstly on our own" - he added. Kazakhstan at the end of May, 2008 introduced duty on oil export in amount of $109.91 per ton for 38 companies, functioning on Kazakhstan territory. Among them - semi government Exploration Production KazMunaiGaz and other small companies. In July government made additions and expanded the list, spreading duty on reservoir management plan of Karachaganak deposit, which develops companies consortium such as LUKOIL, Eni, BG and Chevron. The duty is supposed to cover almost all contracts next year and its amount will be reviewed once a quarter, depending on world oil prices. Besides, government announced many times on intention to introduce duty on metal and gas export in Kazakhstan. [2008-08-07]