Embassy of India Astana, Kazakhstan Tel:(007-7172) 925700-703 Fax:(007-7172) 925717
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Embassy of India Astana, Kazakhstan Tel:(007-7172) 925700-703 Fax:(007-7172) 925717 No.Ast/Com/202/09/2009 October 07, 2009 Economic & Commercial Report for August, 2009 1. GDP Growth Rate: 2004 9.6 2005 9.5 2006 10.6 2007 8.5 2008 3.0 In its monthly report, the Statistics Agency of Kazakhstan reported that GDP in the 1st quarter of 2009 was KZT 3045.9 billion ( USD 20.3 billion approx). GDP decreased by 2.2% in comparison with the same period of 2008. According to the Ministry of Industry, Foreign trade turnover of Kazakhstan in January-July 2009 was USD 36.6 billion. The main trading partners of Kazakhstan were Russia and China amounting to USD 6.6 billion (18.0%) and USD 5.1 billion (14.1%) respectively. Kazakhstan exported primarily minerals (71.4%), metals and metal products (13.7%), chemical products, products of animal and plant origin, foodstuffs (4.6%), machines, equipment, means of transport and devices (1.2%). The main imported products were machines, equipment, means of transport, devices (35.1%), metals and metal products (26.8%), chemical products, rubber and plastic (12.1%), minerals (9.6%), products of animal and plant origin, foodstuffs (8.4%) and wood (3%). 2. Rate of Inflation (Consumer Price Index): Year %age 2006 8.4 2007 18.8 2008 9.5 January-June, 2009 3.8 July, 2009 0.3 August, 2009 0.2 ¾ Year on year inflation till August, 2009 was 6.2 %. 3. Total External Trade of Kazakhstan to CIS and non-CIS countries (In USD for January – July 2009) 2009 January-July (in Share %age of trade mln dollars) External trade turnover 36,614.95 Exports 21,003.40 CIS countries 3,738.28 17.80 Non-CIS countries 17,265.12 82.20 Imports 15,611.55 CIS countries 6,796.95 43.50 Non-CIS countries 8,814.60 56.50 4. Foreign Trade of Kazakhstan (January to July 2009) Items January- July 2009 (in mln USD) Import 15,611.55 Export 21,003.40 Total Foreign Trade (in USD) 36,614.95 Trade Balance (in USD) (+)5,391.85 5. Total trade and share of 10 major countries: Country January- July 2009 (in Share %age of total mln USD) trade Russia 6,601.35 18.00 China 5,172.15 14.10 Italy 3,697.32 10.10 Ukraine 2,233.68 6.10 Switzerland 2,214.06 6.00 France 2,038.86 5.60 Germany 1,368.96 3.70 USA 1,127.08 3.10 Great Britain 1,104.682 3.00 Netherlands 1,050.03 2.90 6. Principal ten Export Destinations: (Export in USD for January- July 2009) Country January- July 2009 (in Share %age of total mln USD) trade Italy 3,137.50 8.56 China 2,822.97 7.70 Switzerland 2,112.00 5.76 Russia 1,816.54 4.96 France 1,800.68 4.91 Netherlands 906.30 2.47 Ukraine 785.23 2.14 Great Britain 735.42 2.00 Uzbekistan 503.05 1.37 Israel 462.26 1.26 7. Principal ten Import Sources of Kazakhstan: (Imports in USD for January-July 2009) Country January- July 2009 (in Share %age of total mln USD) trade Russia 4,784.81 13.06 China 2,349.17 6.41 Ukraine 1,448.45 3.95 Germany 1,171.10 3.19 USA 865.26 2.36 Italy 559.82 1.52 Great Britain 369.25 1.00 Japan 364.11 0.99 Turkey 289.60 0.79 France 238.20 0.65 8. The principal four export items from Kazakhstan to India for the period of January- July, 2009 (in thousands USD) Items Thousands USD 1 Iron and plain steel slabs 37,653.30 2 Petrochemicals 24,069.90 3 Leather 12,083,70 4 Asbestos 6,115.20 9. The principal five export items of Import from India to Kazakhstan for the period of January- July,2009 (in thousands USD) Items Thousands USD 1 Pharmaceutical and medical products 23,697.10 2 Tea 19,020.20 3 Electrical equipment and spare parts 8,255.30 4 Industrial machinery, equipment, milling 6, 966.10 machinery and spare 5 Cosmetics and Detergents 2,869.70 10. Kazakhstan’s trade with India for January – July 2009 Overall trade with India has increased from USD 153.91 (from January to July, 2008) to USD 167.40 million (from January to July, 2009) resulting in an increase of 8.76% in total trade. In comparison with period from January to July, 2008, imports from Kazakhstan have increased by 94.68% (from USD 41.21 mln to USD 80.23 mln) whereas India’s exports to Kazakhstan have decreased by 22.65% (from USD 112.70 mln to 87.17 mln). (In million USD) Particulars 2007 % 2008 % 2009 2008 % 2009 Jan- Change Jan- Change Jan- Jan- Change July Dec. from Dec. July July 2006 India’s 48.10 -19.4 164.04 +241.03 80.23 41.21 94.68 3.26 Imports India’s 147.65 -1.87 203.82 +38.04 87.17 112.70 (-)22.65 10.34 Exports Total 195.75 -6.90 367.86 +87.92 167.40 153.91 8.76 13.60 Trade 11. Major Developments/High level visits: Speaking at launch of the Zhetygen-Korgas new railway construction project on August 3, 2009 in Almaty, President Nazarbayev said that despite the crisis, hundreds of kilometres of railroad and thousands of kilometers of motor roads would be built in the next five years. The construction of Zhetygen-Korgas railway - an alternative route from China to Kazakhstan commenced from August 3, 2009. The length of the railway line would be 293 kms and the construction is expected to be completed in next 45 months. Kazakh President Nursultan Nazarbayev met the heads of the People's Bank and KazKommertsBank in Almaty on August 4, 2009 and discussed the current state of the country's financial sector. The Head of State noted that he had reports on country’s economic and financial systems for the first six month of this year and believed that people’s confidence in Kazakh Banking System was increasing. A delegation from USA headed by House of Representatives Minority Leader John Boehner met with Kazakh Prime Minister Karim Masimov on 8 August, 2009 in Astana and discussed cooperation in the oil, gas and energy spheres as well as activities of the joint Kazakh-American Commission on Energy Cooperation. Both sides discussed further development of cooperation between Kazakhstan and the USA on a wide range of collaboration issues. The prime minister briefed the visitors on the measures being taken by the Kazakh government to stabilize the national economy and ensure stability in the banking and financial sectors of the country. The meeting also touched upon ensuring security in the Central Asian region, primarily in fighting drug trafficking. Both sides confirmed the readiness of Kazakhstan and the USA to boost all-round cooperation in all spheres of strategic partnership. Kazakh President Nursultan Nazarbayev announced in Astana on August 12, 2009 that the state budget for 2010 will be reviewed taking into account the continuing global financial crisis. He added that he did not see any substantial improvement in the situation in the global financial system. He further added that the state budget for 2010 will be reviewed keeping in view the National Fund and Gold and Foreign Currency Reserves of Kazakhstan. The state-owned Khabar TV reported that Kazakh President Nursultan Nazarbayev had a telephonic conversation with Turkmen President Gurbanguly Berdimuhamedov on August 13, 2009. They discussed development of bilateral economic cooperation. The conversation focused implementation of a number of multilateral strategic projects, construction of a railway line which will link Kazakhstan, Turkmenistan and Iran, construction of the Caspian gas pipeline with participation of Kazakhstan, Russia and Turkmenistan and construction of the gas pipeline along the Turkmenistan-Uzbekistan- Kazakhstan-China route. The Kazakh Minister of Labour and Social Protection, Gulshara Abdykalikova met with Representatives of the Estonian Ministry of Social Affairs, Local Authorities and NGOs on August 17, 2009 in Astana. During the meeting, both sides exchanged information on experiences of both states in the sphere of pension and social insurance, providing special social services to disabled people, issues of ratifying the Convention on the Rights of Persons with Disabilities and Anti-crisis Measures. The privately-owned Interfax-Kazakhstan News Agency reported that the Presidents of Kazakhstan and Azerbaijan, Nursultan Nazarbayev and Ilham Aliyev, discussed over phone the current state of and prospects of bilateral relations on August 17, 2009. In particular, they discussed economic cooperation in the spheres of energy, hydrocarbon transportation as well as developing all- round cooperation in the Caspian region. They agreed to continue high-level bilateral contacts including official visits and informal summits. They also discussed the implementation of agreements reached during the talks in Moscow in July 2009 and preparations for the Kazakh President's visit to Baku in October [2009]. Interfax-Kazakhstan News Agency reported that the Kazakh President Nursultan Nazarbayev had a telephonic conversation with Moldovan President Vladimir Voronin on August 17, 2009. They discussed developing bilateral relations, economic, cultural and humanitarian cooperation between the two countries. Moldovan President briefed the Kazakh President about the results of the Moldovan Parliamentary Elections. They also discussed the forthcoming meeting of the Heads of CIS States in Chisinau in October 2009. At a Government meeting in Astana on August 18, 2009 Kazakh Minister of Economy and Budget Planning, Bakhyt Sultanov stated that the decline in the rate of economic development has reached its trough in the first 6 months of this year and the trend is towards the phase of recovery.