Kazakhstan’s GDP grew by 0.1% y/y to KZT19,354.4bn (€50.5bn) in the first six months of 2016, the State Statistics Committee said on August 19 as it released preliminary figures.
The Kazakh economy is experiencing one of its toughest years in over a decade as a result of low oil prices, the ongoing recession in Russia and slowing demand from China. GDP growth eased sharply to 1.2% last year from 4.3% in 2014. Growth is expected to furter ease to between 0% and 1% in 2016 depending on the average price of oil. The low price of oil makes production unprofitable at some ageing Kazakh oil fields, driving output down and badly affecting the oil-based economy.
The GDP growth in the first half of 2016 reflected a 2.7% y/y increase in the agriculture sector to KZT480bn and a 6.6% y/y hike in the construction sector to KZT983bn. Industry fell by 1.8% to KZT5.37tn. Gross added value decreased by 0.1% to KZT18.12tn.
Production of goods accounted for 35.4% of the country's GDP, or KZT6.84tn, and services for 58.2%, or KZT11.82tn. Taxes on products made 6.4% of GDP, increasing by 3.5% y/y to KZT1.24tn.
The agriculture sector accounted for 2.5% of GDP, industry for 27.8% and construction for 5.1%.
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