Kazakh President Sets Tasks on Economic Stabilization during Government Meeting

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The economy grew by 4 percent at the end of the year. 

Kazakh President Sets Tasks on Economic Stabilization during Government Meeting

The Astana Times – President Kassym-Jomart Tokayev said that the full recovery of economic potential of the country is an important task for a new government at the extended meeting of the government on Feb. 8, reported Akorda. 

The economy grew by 4 percent at the end of the year. The manufacturing industry grew by 5.5 percent, and the construction industry – by 7.6 percent. Trade increased 9.2 percent and the transport sector by 3.6 percent. The inflation exceeded its target and amounted to 8.4 percent.

“The events in the beginning of this year have changed our lives. Many people suffered because of the riots. Small and medium businesses experienced losses as a result of illegal actions. According to preliminary estimates, damage to businesses reached more than 100 billion tenge (US$232 million). The government is set to stabilize the economy and reduce inflation,” said Tokayev.  

The country is facing a difficult period amid the pandemic, a decline in business activity and challenges to national security. “We managed to keep our integrity due to the unity and solidarity of our people. The government should improve the well-being of our people, eliminate income gaps, and create jobs with decent working conditions,” he said.

The President instructed the government to develop a single pool of investment projects. The public monitoring of project implementation is expected. “Our investment policy should be efficient in the conditions of fierce global competition,” he said.

The head of state noted that it is necessary to reduce the gap between income levels. “Income is the major factor in improving the well-being of people and their trust in the future. Unfortunately, recently the incomes of people have increased not due to the improvement of the economy, but to social transfers,” he added.

Tokayev instructed the Ministry of Finance, the Agency for Strategic Planning and Reforms and the Accounts Committee to develop methods for assessing the socio-economic impact of public expenditure within two months.

It is expected that the Otbasy Bank and the Ministry of Digital Development, Innovations and Aerospace Industry will create a digital platform for those who are entitled to subsidies. Leasing property owners also should register there to choose housing.

President Tokayev will deliver an address to the people in the middle of March, reported President’s Press Secretary Berik Uali on Feb. 7 on Facebook.

The President will outline the key directions of reforms and priority measures, which were earlier presented at the Majilis session on Jan. 11.