Kazakhstan’s manufacturing sector grows 5.2% in first half of 2018

statistics-1c8

ASTANA (TCA) — In the first half of 2018, Kazakhstan’s manufacturing sector grew 5.2% on-year, with the main drivers of growth being engineering, chemical industry, food production, oil refining, metallurgy, and construction materials production. It was said at the Government meeting on August 22 which reviewed results of the State Program for Industrial and Innovative Development of Kazakhstan for 2015-2019 achieved in the first six months of 2018, the official website of the Prime Minister of Kazakhstan reported.

Minister for Investment and Development Zhenis Kassymbek reported that the implementation of the program has a positive effect on the sustainability and growth dynamics in the manufacturing sector.

Thus, the GDP share of manufacturing increased from 11.6% in 2015 to 12.9% in 2018, in industry — from 39.5% in 2015 to 40.9% in 2018, in exports — from 24.4% in 2015 to 28.7% in 2018, the inflow of foreign direct investment grew from 15.5% in 2015 to 17.6% in 2018.

In addition, according to Kassymbek, industrialization contributes to an increase in the number of enterprises in manufacturing industries, oriented at the production of finished products (chemical industry, engineering, furniture, construction materials, etc.).

The minister said that the State Program continues the launch of new production facilities, modernization and expansion of existing enterprises. For the six months, under the Industrialization Map, 18 projects for 187 billion tenge were introduced, more than 1,800 permanent jobs were created. In the second half of the year, it is planned to implement about 100 projects for 1.1 trillion tenge with the creation of more than 12,200 jobs.

Kassymbek also said that currently, on the instructions of the Head of State, the ministry, taking into account new global technological trends, has developed a conceptual vision of industrial-innovative development for 2020-2024.

The basic principles and approaches for the Third Five-Year Plan of Industrialization will be aimed at further enhancing the competitiveness of the manufacturing industry with an emphasis on the development and promotion of exports. Particular attention will be paid to technology transfer and digitalization of the manufacturing industry.

Sergey Kwan

TCA