KAZAKHSTAN’S GDP GROWS SEVEN PERCENT IN 2010

Astana, January 12: According to Kazakhstan’s Prime Minister Karim Massimov, the preliminary results of 2010 are very optimistic and need to be sustained in future.

“Overall, we all did a good job. According to the forecasts, the gross domestic product of our country increased by seven percent last year,” Massimov stated at the governmental session on January 11. Industry output has increased by 10 percent, construction by one percent, trade by 12 percent, transportation by 7.4 percent, communications by five percent. At the same time, agriculture saw a decline of 11.7 percent due to drought-caused decrease in harvest, compared to the record one of 2009.

According to earlier forecasts, the government predicted the GDP growth in 2010 to make five percent. Later this indicator was adjusted to more than six percent.

“Overall, we have achieved the indicators we have set,” the head of the government emphasised.

According to the data, the annual inflation in the country in 2010 made 7.8 percent, while the mid-annual rate was 7.1 percent, Governor of the Kazakhstan’s National Bank Grigory Marchenko announced during the session. The National Bank’ forecast for GDP in 2011 makes 5-6 percent, while in terms of inflation, the National Bank intends to keep it around 5-8 percent over the period of the next five years, Marchenko added.

In addition, gold reserves of the country in 2010, including the reserves held by the National Bank and the National Fund, amounted to US$ 58.9 billion, a 24 percent increase compared to 2009. The overall National Fund’s foreign reserves at the end of 2010 made US$ 30.6 billion, while the reserves of the National Bank amounted to US$ 27.7 billion, a 23 percent increase compared to 2009.

“Currency purchased on the domestic market and the earnings to the governmental accounts in the National Bank have been partially neutralised by lowering the balances in correspondent banks’ accounts in foreign currency in the National Bank and by the operations held to service external debt of the government and the replenishment of assets of the National Fund. As the result, the net foreign currency reserves for 2010 have increased by 23.2 percent, while assets held in gold have increased by 22.1 percent,” the National Bank reported.

According to the International Monetary Fund, Kazakhstan’s GDP in 2011 should grow by around five percent.

“We must not drop a clanger in 2011, we need to keep the estimated indicators, both in industries and in regions, in order for the pace achieved in 2010 to be sustained in 2011,” Massimov stated.

Furthermore, 29.7 million transactions amounting to KZT 187.7 trillion (US$ 1-KZT 147) have been made through the payment systems of Kazakhstan in 2010.

The number of transactions through the Inter Bank Fund Transfer (IBFT) made 11.5 million for the amount of KZT 184.5 trillion, making an increase of 14.6 percent or 3,785,300 transactions compared to 2009, while the sum of payments has increased by 17.5 percent or by KZT 28 trillion. The average amount of transfer through the IBFT made KZT 16.1 million which is 2.4 percent more than the last year.

The number of documents passed through the Interbank Clearing System made 18.3 million amounting to KZT 3.3 trillion or 14.5 percent more than 2009, while the sum of payments has increased by 18.6 percent compared to the last year. The average amount of a document made KZT 178.3 thousand which is 3.6 percent more than in 2009.