Page 38 - bne_Magazine_June_2017

38 I Special focus bne June 2017
Kazakhstan’s economy has grown
by 2.5% since the beginning of 2017, Economy Minister Timur Suleymenov said at a government meeting on March 27. Suleymenov predicted in a March 2 interview with Reuters that higher-than- expected oil prices may push Kazakh GDP growth to 2.8% in 2017. Kazakh GDP clocked growth of 1% in 2016. While low oil prices hit the hydrocarbon-dependent Kazakhstan’s economy in 2014-2016, the launch of the giant Kashagan oilfield in October will help support growth in 2017, Kazakh authorities anticipate. Kazakh- stan’s is hoping to produce up to 81mn tonnes of crude oil and gas condensate in 2017, despite its commitment to cut production by a nominal 20,000 bbl/d in the first half of the year. Kazakh oil out- put declined by 1.4% to 65.5mn tonnes in 2016. Oil and gas exports in Kazakhstan account for 76% of goods exports and 18% of nominal GDP.
Kazakhstan’s industrial output grew 5.8% y/y in the first quarter, latest data from the State Statistics Commit- tee shows. The spike marks a continued recovery from a downward trend in Kazakh production – industrial out-
put declined by 1.1% y/y in 2016. The change was driven by a 5.2% y/y recov- ery in the hydrocarbons sector, where low oil prices in 2016 made production unprofitable at some of the country’s oilfields. The reversal of the trend began with the launch of the giant Kashagan oilfield in October 2016. A rise in the output recorded by Kazakhstan's other extractive sectors also supported growth in February. The Kazakh authorities have targeted the raising of oil produc- tion by an additional 4mn-7mn tonnes in 2017 from 2016's level. Mining and quarrying grew by 5.6% y/y in the three-month period, while manufactur- ing increased by 6.5% and electricity and gas utilities rose by 3.9% y/y.
Kazakhstan annual GDP y/y%
Kazakh industrial production
www.bne.eu