Macroeconomic Review of Kazakhstan (July 2016)
Summary of the situation in the domestic economy presented by the Department of summary analysis NCE RK "Atameken"
Inflation in the country tends to gradually slow down. This thesis is confirmed by statistical data of the Committee of statistics of MNE RK, as well as the results of a poll published on the page of the National Bank of Kazakhstan. The population has also very optimistic expectations for the next 12 months.
MNE of RK officially informed about economic growth in the I-st half-year of 2016 by 0.1%, while the short-term economic indicator, on the contrary, decreased by 0.7%. The contradiction between the figures, according to the officials of MNE RK, occurred due to the service sector (except for trade, transport and communication) and an increase in state revenue.
The structure of state revenue gradually shifted towards non-tax income, which includes interest and penalties. A similar phenomenon was observed in the last crisis - a financial crisis of 2007, which indicates the use of an identical anti-crisis fiscal policy by the Government.
Key sectors of the economy, trade and industry, still show a negative performance index of physical volume (hereinafter - IPV). There is a significant reduction in commercial networks in the trade sector in annual terms, and reduced capacity in the industrial sector.
Officially, the unemployment rate continues to decline, despite the crisis mood in the economy. This is not surprising, as the country's unemployment rate did not react to the crisis in the past. Along with the unemployment rate, there is an increased number of resigned and hired staff among large and medium-sized enterprises of the country, which tells us that in such forms of organizations dismissed staff prevails over hired staff in the first half of 2016, in fact, it should lead to an increase in the unemployment rate.
As for reserves, there is a noticeable increase in gold reserves, as well as the increase of the National Fund of Kazakhstan. The first phenomenon is explained by purchase of domestic gold by the regulator, and the second can’t be explained, as it is related to the investment income of the fund in the amount of nearly 2 billion USD.
Dollarization of the economy remains high, but is experiencing a slight easing in the current year.
More information on Macroeconomic Review of Kazakhstan for July 2016 can be found here.
Please, join our Telegram channel to stay up to date on the latest news.
Leave comment:
Comments: