Kazakhstan's economic development during first semester of 2001

/IRBIS, August 2, 01/ - Great Silk Road World News Agency informs that the first half of this year has been characterized by a quickening of the economic development of all major sectors. According to the preliminary estimate of the Kazakhstan Statistics Agency based on up-to-date data, GDP rose 14% (11% of the growth during the first quarter) during the first six months this year vs. the same figure of 2000. Industrial production lurched forward by 13.6% during the period under consideration vs. 2000 (by 11% over the first quarter). Production of ferrous metallurgy fell by 4.3% during the first quarter but as of the end of the first semester the production increased by 0.9% as a whole. The highest growth rates were reported in footwear and leather ware (4.5 fold) production, the chemicals industry (1.5 fold) and machine building (1.4 fold). A great deal of attention has been paid to the import substitution program. In particular, construction of oil and gas treatment equipment increased 4.6 times during the period under consideration and production of food treatment equipment grew by 4.7 times. During the first half of 2001, the development of the agricultural sector stood at the same level as the first quarter (4.6%); while cargo transportation rose 7.4%. The refinancing rate of the National Bank of Kazakhstan fell and stood at 12% as of early June this year. The money supply in the economy tended upwards; this indicator jumped up by 45% vs. the same period during 2000. Credit provided by commercial banks increased by 23%. The percentage of long and medium-term credit totaled 50%. The low inflation rate (a mere 3.7% over the period under consideration vs. December 2000) together with the fixed refinancing rate spurred on the investment market which displayed a 33.5% increase of investments in fixed capital. The net international reserves of the National Bank of Kazakhstan accrued to $2.3bn. The assets of the National Fund exceeded $1bn; the authorized fund of the Development Bank of Kazakhstan neared 30bn tenge. Approximately $480m were transferred to second-tier banks due to the recent legalization dealing with Grey capital. Development of the social sector displayed the following peculiar traits: the average monthly nominal wage rose by 21.7% and real wages rose by 11%. According to the government, the amount of people in the country characterized as having low income fell from 19% to 12%. However, this may be a result of the unprecedented reduction of the low-income poverty threshold all over the world: from $1 (per day) to 40 cents in the USA. The Ministry of the Economy has forecasted that the growth rate of GDP will be 10% as of the end of 2001; industrial production will increase by 14%, agriculture 4%, building 22% and services 9%. The Great Silk Road World News Agency 7, Gainsford Street, London, SE1 2NE, U.K. TEL/ FAX 44 0171 403 20 37 greatsilkroad@btinternet.com