Kazakhstan’s Economy Grows by 3.9% in January, While Challenges with VAT Refund and Inflation Control Remain

Kazakhstan’s Economic Growth Reaches 3.9% in January

Kazakhstan’s economy grew by 3.9% in January, according to Deputy Prime Minister and Minister of National Economy Nurlan Baibazarov. This information was relayed by the Prime Minister’s press service after Baibazarov made the remark during a government meeting chaired by Prime Minister Olzhas Bektenov. The highest indicators for growth were seen in the construction sector, which grew by 12.8%, transport and warehousing by 11.4%, information and communications by 10.6%, and manufacturing by 6.9%.

Last year, foreign trade turnover increased by 3.2% to $140 billion, with exports approaching $79 billion and imports exceeding $61 billion. The positive trade balance reached nearly $18 billion, with processed goods supplies accounting for over $25 billion. The Prime Minister emphasized that the government’s priority task for the current year remains to ensure stable economic growth at 6%.

However, there was a problem with last year’s value-added tax (VAT) of around 600 billion tenge ($1.3 billion), which was not refunded to businesses. In order to finance urgent expenses, the budget advanced payments for 2024 were made. The Prime Minister cited President Kassym-Jomart Tokayev’s words that this situation was a result of incorrect planning and it must not be repeated again. There will be no increase in VAT this year as a result of this issue being resolved.

The government is also focused on containing price increases, aiming to maintain inflation within the range of 6-8% this year

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