According to the Chairman of the National Statistics Agency, Zhaksybek Kulekeev, the preliminary estimate of Kazakhstan's GDP in 1998 is KZT 1,750bn (USD 20.6bn), down 2.5% compared with 1997. At a press conference in Astana on 8 February he said that the proportion of commodities output decreased to 35.8% in 1998 from 38.2% in 1997. Foreign trade in the first 11 months of 1998 fell by 7%, and exports fell by 15% to USD 5.5bn. Imports increased during the same period by 1% to USD 7.13bn. Trade with CIS countries, including small scale trade (also called "shuttle trade"), dropped by 11% and totalled USD 5.6bn. Exports to CIS countries amounted to USD 2.4bn, while imports remained unchanged, at USD 3.4bn. (Interfax)

Speaking at a government session on 9 February, Prime Minister Nurlan Balgimbaev said that Kazakhstan managed to take timely measures to mitigate the impact of the world financial crisis. However, he noted that the balance of payments deteriorated last year. Kazakhstan posted a USD 1.7bn trade deficit in 1998. Prices of the country's major exports—oil, metals, grain—fell by 20%-40% while import prices more than doubled. However, according to Balgimbaev, Kazakhstan raised USD 2.2bn in investment in 1998, up 12% compared with 1997. Year-end inflation was 1.9%, far below the 9.5% forecast. Privatisation revenues totalled KZT 50bn (USD 588m) although the planned figure was KZT 45bn. The average wage in Kazakhstan is the highest among CIS countries and is the equivalent of USD 120-130. The average monthly pension rose to USD 48. (Interfax)

According to Prime Minister Nurlan Balgimbaev, Kazakhstan intends to raise KZT 64bn (some USD 750m) through privatising metal plants and oil concessions in 1999. Of the companies to be sold, the Prime Minister cited the metal giants Sokolovsko Sarbaisky Mining and Concentrating Plant, Kazchrome, Kazzinc, Kazakhmys, and Aluminium of Kazakhstan. The government also plans to earn money from selling oil exploration rights on the Caspian shelf. (Reuters)

Kazakhstan's government issued two decrees on 5 February whereby import duties of 200% were imposed on a range of foodstuff items and other products from Kyrgyzstan and Uzbekistan. The decrees will go into effect within a month. The range of products includes all alcoholic and soft drinks, juices, tobacco, butter, margarine, yeast and mayonnaise from Kyrgyzstan. From Uzbekistan, the list is similar but it also includes rice and cement.

The introduction of these new tariffs follows the ban on the import of 21 foodstuff items from Russia imposed by the government in January. According to government officials, such steps are necessary to protect domestic producers. Kazakhstan's Tenge has remained relatively stable while the currencies of Kyrgyzstan and Uzbekistan plunged after Russia's financial turmoil last August. Kazakhstani producers have been hurt by lower-priced goods from these countries. (Reuters)

The government debt of Kazakhstan as of the end of 1998 was KZT 347.7bn (USD 4.09bn), which was 19.8% of the GDP. Of this total, KZT 275.7bn represented foreign debt and KZT 72bn represented domestic debt. This information was released by the Chairman of the State Agency for Strategic Planning, Yerzhan Utembaev, at a press conference last Thursday. The largest borrowings were made in 2Q and 3Q 1998 which were, to a large extent, due to the crisis on commodities and financial markets in Russia and Southeast Asia. As a result, the yields on state debt securities increased and volumes of borrowings grew. (Reuters)

The board of directors of the World Bank (WB) has approved a USD 100m loan to Kazakhstan for the reconstruction and maintenance of roads. The total value of the project is USD 135.7m, of which Kazakhstan will provide USD 35.7m. According to a WB study, Kazakhstan has 17,000 km of roads and only 37% of those roads are in good condition. The loan will be for 20 years with a 5-year grace period and will have a LIBOR-linked interest rate. (Interfax)