2000-01-10 Kazak Politics & MacroEconomics - GDP and Industrial Production

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GDP and Industrial Production Climb 1% and 1.8% Respectively in 1999

Kazakhstan’s GDP grew 1% this year from 1999, Kazakh Prime Minister Kasymzhomart Tokayev said at an expanded government meeting which President Nursultan Nazarbayev attended on Wednesday.

The outgoing year was “not easy” but GDP went up despite a projected decline, Tokayev said. Industrial production climbed approximately 1.8% and agricultural expansion reached 22%, he said. Growth was also registered in transportation and communications.

Kazakhstan is likely to attain a zero trade balance in 1999, Tokayev said. The National Bank’s gold and foreign currency reserves increased rapidly and reached almost USD2 billion. This is a record high level since Kazakhstan introduced its national currency in November 1993, he said. The Cabinet of Ministers obtained the International Monetary Fund’s approval for its new policy, Tokayev further  said. This enhanced the investment climate and cleared the way for the release of planned loans. The state budget was fulfilled for 92%-93% and 99% of tax and non-tax revenues were collected, he said.

The government cleared pensions as well as social and special benefits arrears. Regions received 99% of their planned subventions from the state budget.

A new Tax Code will be adopted in mid-2000, Tokayev said. It will be favourable for entrepreneurs and ensure “a real economic freedom”, while maintaining the budget revenue level, he said. The next year’s strategic objective is to transfer from “patching holes” to systematic economic planning, which should ensure consistent growth, he said. The government aims to create new working places and to decrease poverty, he said. (Interfax, Bloomberg)