Real sector of Kazakh economy shows dynamic recovery in post-lockdown life
Relaxation of quarantine measures is bearing fruit – Kazakhstan’s economy is reviving. Results of the month of May confirm this fact. As soon as lockdown restrictions were lifted, certain service sectors of the Kazakh economy began actively developing, Kazakh Minister of National Economy Ruslan Dalenov said at the government meeting. He said that the trade alone increased by 28.3 percent, while transport services rose by 20.7 percent, including passenger transport by 41.5 percent and freight transport by 5.7 percent. Similar dynamics is observed in the field of nutrition, with a growth of 10.8 percent.
Following the results of five months of this year, the production of goods increased by 4.8 percent. Compared to the period from January to April of 2019, an increase in the trade surplus of 4 percent was ensured. The manufacturing sector is also showing growth.
“A Comprehensive Plan for 2020 was adopted on May 20 in order to further restore the economic activity. It covers specific applied measures, such as the creation of the Industrial Development Fund. It provides for lending to the manufacturing enterprises at concessionary interest rate of 3 percent,” said Dalenov.
Governor of the National Bank of Kazakhstan Yerbolat Dossayev also noted the signs of economic recovery in Kazakhstan. Kazakhstan’s central bank surveyed nearly 450 large businesses, as well as small and medium-sized enterprises, in industry, construction and services sectors. According to the data received, the index of business activity in Kazakhstan increased to 44 points in May, whereas in April this figure reached only 37.2.
Dossayev also said that in May the positive dynamics prevailed in foreign markets due to the decrease of COVID-19 infection rate in many countries and their gradual lifting of lockdown restrictions. Relaxed quarantine measures contributed to the resumption of economic activity and increased energy demand.
“In May, oil stock quotes in external markets grew by 39.8 percent from US$25.3 (or 10,044 tenge) to US$35.3 (14,014 tenge) per barrel. This was due to the gradual equalization of the balance in the oil market resulted from the implementation of the OPEC+ agreement to reduce oil production. On June 8, oil prices stood at US$40.8 (16,197 tenge) per barrel in world markets,” Dossayev emphasized.