Politics and Macroeconomics -- Kazakhstan Weekly News

Kazakhstan's Economic Results in January-April

Kazakhstan's industrial output in January-April 1999 totalled KZT 260.9bn (USD 2.23bn), down by 4.6% compared with the same period of 1998. This information was released by the chairman of the National Statistics Agency, Zhaksybek Kulekeev, at a news conference on 13 May. According to him, large and medium-sized companies have accounted for over 90% of Kazakhstan's industrial production. The greatest reduction (by 8.4%) was reported in the mining industry which accounts for more than 1/4 of industrial output. The decline in this sector was largely due to a reduction in iron ore and coal production.

At the same time, the production of non-ferrous metal ores increased by 10.42% and the production of natural gas by 3.2%.

Manufacturing industry (responsible for more than 40% of the country's industrial production) output made up 96.1% of that of a year ago. A considerable reduction was reported in the production of machinery and equipment, petroleum products, electrical and electronic equipment, leather and leather goods, and in processing agricultural products.

The ferrous metal industry saw a 17% increase in production; also there was a 14.8% increase in the transport equipment industry, a 12% increase in the textile industry, and a 6.8% increase in the chemical industry.

Kazakhstan's gross agricultural output grew by 2.4% to KZT 38.4bn (about USD 3330m) in January-April compared with the same period a year ago.

Kazakhstan's Foreign Trade Turnover in 1Q99

As reported by the National Statistics Agency, Kazakhstan's foreign trade turnover fell by 25% to USD 2,556m compared with a year ago. Exports in the reported period decreased by 29% to USD 1,141.2m and imports reduced by 21% to USD 1,414.8m.

Japan's Mitsui & Co Has Strategic Interests in Kazakhstan

According to the Chairman of Kazakhstan's Agency for Strategic Planning and Reforms, Erzhan Utembaev, Japan's Mitsui & Co "has very serious strategic interests in Kazakhstan." A visiting delegation from the company met with President Nursultan Nazarbaev in Astana last week. During this meeting the company showed an interest in working in different sectors in Kazakhstan including oil and gas production and transportation, mining minerals and gold, and construction of roads and railways. Mitsui & Co also intends to participate actively in the construction of Astana, said Mr. Utembaev. The company is currently having talks with leading Kazakhstani ministries and national companies and will then select projects. (Interfax)

Construction of Kazakhstan Oil Export Pipeline Begins

The Caspian Pipeline Consortium was reported to have started the construction of a 1,500 km oil export pipeline from Novorossiisk to Kazakhstan's Tengiz oil field (Western Kazakhstan). The USD 2.2bn project is scheduled for completion in 2001. During the operation of the pipeline (40 years) Kazakhstan is to receive USD 8.2bn in tax revenues and profits and Russia will receive about USD 23.3bn. (IRBIS)

World Bank Provides a Grant to Kazakhstan

The World Bank (WB) approved on Friday, 14 May, a USD 130,000 grant in support of Kazakhstan's national plan Y2K. An agreement on the grant was concluded with the computer centre of the Kazakh Finance Ministry. This move is in line with the WB's general strategy to tackle the most serious problem that the country members may face with the commencement of the year 2000. (Interfax)

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