Kazakh exports increase almost 40 percent, as economy grows 4.2 percent in first half of 2017

    Kazakh exports increased 37.6 percent in the first half of 2017, Kazakh Minister of National Economy Timur Suleimenov announced at a recent government meeting.
    “In January-May of this year, the country’s foreign trade turnover grew 29.2 percent to $29.9 billion as a result of renewed demand and growth in prices. The export rose 37.6 percent to $19 billion. Import of goods increased 16.7 percent up to $10.9 billion. The positive balance of foreign trade turnover exceeded $8 billion, a growth of 1.8 times,” said Suleimenov.
    According to the minister, during that period the economy of Kazakhstan developed in conditions of stabilisation of commodity prices, an increase of economic activity in the countries that are its main trading partners, as well as positive expectations regarding the growth of the world economy.
    The biggest growth rates were recorded in the manufacturing industry, construction, agriculture, transport and warehousing and trade.
    Amid the stabilisation of prices and increased supplies, the export of copper ore increased 3.3 times, ferroalloys exports rose 1.9 times and zinc ore export increased 1.5 times, while iron ore exports rose 1.4 times. In general, foreign trade shows a stable growth dynamics, said the minister.
    “The price of oil maintains its stability, despite its drop in June this year to $46.9 per barrel. Following the results of six months, it stopped at the level of $52.2 per barrel, which is one third higher than the last year. Prices are increasing for all base metals,” he added.
    In 2017, according to the IMF estimate, the resumption of economic activity will ensure the 3.5 percent growth of the world economy. China’s GDP is expected to grow 6.7 percent, the European Union’s 1.7 percent and Russia’s 1.4 percent.
    “In general, we can note the positive impact of external factors on the economy of Kazakhstan and the gradual stabilisation of the internal parameters of the development of our economy. According to preliminary data, in January-June this year, Kazakhstan’s GDP grew 4.2 percent (in January-June 2016 that parameter was 0.1 percent),” added Suleimenov.
    Suleimenov said that the indicator of gross domestic product is planned to expand with new parameters taking into account the social and environmental aspects in Kazakhstan. The ministry intends to submit the draft of the strategic plan 2020-2025 for public discussion in mid-August. After discussion and finalisation, the plan will be submitted for approval in November.
    “We are currently developing a strategic plan 2020-2025. This document will contain not only some aspects about economic development but also about the ecological and social aspects. We plan to develop a matrix of indicators, ranging from life expectancy, infant mortality, GDP, on the basis of which the overall progress of the state will be monitored,” said Suleimenov.
    According to the minister, it is difficult and inexpedient to do away with the methodology for calculating GDP as a macroeconomic indicator since international comparison is the key in the field of statistics.
    “We plan to include more elements of social, environmental statistics and ratings in the methodology. This rating will be based on what we currently have. We will not introduce something that we cannot follow in the future. Therefore, the introduction will not be difficult; the main thing is to choose a set of correct metrics and indicators that will be fundamental in assessing the overall development of the state,” he noted.
    Earlier, Kazakh President Nursultan Nazarbayev suggested revising the methodology to calculate the GDP per capita as the traditional GDP creates a false perception of economic prosperity at the plenary session of the 10th Astana Economic Forum in June.
    “The GDP indicator has a number of significant flaws. It does not reflect the long-term nature of economic activity and does not show the citizens’ well-being and it does not take into account population stratification by income,” said Nazarbayev.
    Reported by the Astana Times.