In January-June 2018, investments in fixed assets in Kazakhstan increased by 25.8%, compared to the same period in 2017. This happened mainly thanks to oil: most of the money is invested in the extraction of raw commodities, and received by the oil-rich Atyrau region.
According to the Committee on Statistics, in the first half of 2018, the volume of investments in fixed assets amounted to 4 trillion 528.9 billion tenge. Compared to the same period in 2017, investments increased by 25.8%.
The growth of investments was provided by small business by 14.8%, up to KZT 1 trillion 676 billion, and large business, with plus 40.5%, up to KZT 2 trillion 601.7 billion.
Mid-size business in Kazakhstan cuts investment programmes. The volume of financing in January-June fell by 12.7% compared to the same period in 2017, amounting to only 252.2 billion tenge.
The overwhelming majority is in the form of fixed capital.
This includes construction and installation works for 1 trillion 931.1 billion tenge and acquisition of equipment, machinery and vehicles for 1 trillion 576.2 billion tenge.
Compared to the first half of 2017, investments in these areas increased by 23% and 40.1%, respectively.
Despite the fact that investments in construction are on the increase, expenditures for capital repairs of facilities were declining to KZT 72.4 bn in 6 months of 2018 or 78.2% of the level of 2017.
Less attention was paid to the acquisition of databases and software for slightly less than 6 billion tenge, or 72.7% of January-June 2017.
The greatest increase in investments occurred in the area of vehicles and equipment by 2.8 times, as well as in environmental projects by 2.7 times. However, the volume of investments in environmental enterprises is still low at less than KZT18.8bn. This is 7.4 times less than was spent on exploration of minerals, and 2.2 times less than overhaul equipment.
The largest amount of money is spent on raw materials. Investments in the mining sector and the development of raw materials in the first half of the year amounted to 1 trillion 952 billion tenge or 43% of the total investment.
Manufacturing sector is not so attractive, with investments amounting to 532.8 billion tenge.
Thus, the start-up and development of products with added value is consumed 3.7 times less than for the extraction of raw materials, another indicator that Kazakhstan does not get off the oil needle at the current rate.
Another priority area of development in the republic as repeatedly stressed is agriculture, but investors are not particularly interested, spending 126.2 billion tenge, or 2.8% of the total investment.
The annual growth of investments is 5.2%, which does not even cover the level of inflation, so real investments in the agricultural sector are declining.
At the same time, more and more funds are invested in transportation and warehousing and real estate operations at 578.5 and 624.2 billion tenge, respectively.
In terms of investment, these sectors are second only to the commodity sector, and the rate of fund raising at plus 30.1% and plus 36.1% is ahead of the national average of 25.8%.
If investments in agriculture decline in real terms, although they grow nominally, in some other areas even the physical volume of attracted money is reduced.
In the first half of 2018 compared to the same period in 2017, investments in fixed assets fell:
• in financial and insurance activities by 23.8% to KZT24.6bn;
• professional, scientific and technical activities by 13.4% to KZT17.6bn;
• activities in the field of administrative and support services by 73.1% to KZT23.1bn;
• education by 14.8% to KZT85.9bn.
Decrease in indicators in the sphere of education is associated with a decrease in the activity of private entrepreneurs. Budget funds in this sphere have been used as much as they did a year earlier at KZT59.3 billion, while funding from other sources decreased from 36.5 to 26.7 billion tenge on-year.
Private investors do not see the need to finance the educational institutions at the same level.
Utilities received more funds from the state than education, health care, transport, etc.
The total amount of budget funds invested in electricity, gas, steam and air conditioning, as well as water supply; sewerage system, control over collection and distribution of waste amounted to KZT144.8bn.
The state finances 58% of works at enterprises of these industries, while in 2017 the indicator was 54.2%.
In the context of regions, the main recipient of investments is the Atyrau region. This region accounts for 36.7% of all funds invested in the republic.
The volume of financing in the first half of the year amounted to 1 trillion 655 billion tenge, 45.3% higher than in 2017. The figures are not surprising as large-scale oil projects implemented in the region require large investments.
Shymkent attracts money faster than the Atyrau region. In January-June 2018, in the newly-declared city of republican importance, KZT 295.7 bn was invested in fixed assets, which is 3 times higher than in the same period of 2017.
In none of the regions there has been a decline in indicators. However, in the Turkestan and Pavlodar regions, growth is less than 2.5% and it looks very insignificant against the background of general indicators.
Also, the inflation rate does not keep pace with the growth of investments in Astana and the Zhambyl region.
By Alexey Nikonorov for 365 Info (Kazakhstan).
