Kazakh economy shows growth in first half of 2016

By bne IntelliNews August 22, 2016

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%.

Related Articles

Romanian authorities approve takeover of 51% in KMGI by China's CEFC

The Romanian authorities have approved the transaction through which China Energy Company (CEFC) is taking over 51% of KazMunayGas International (KMGI), the majority shareholder in Romania’s ... more

Kazakhstan Stock Exchange Index up by 72% y/y as of July 19

The Kazakhstan Stock Exchange (KASE) Index increased by 72% y/y to July 19, Frontera analytics agency reported on July 25. The rise in the index was ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more