Minister of National Economy of Kazakhstan

On May 21, 2021, at a meeting of the Club of Young Experts, the Minister of National Economy Asset Irgaliyev spoke about the development of the economy of Kazakhstan in the context of the pandemic and about the global trends caused by the coronacrisis.

The meeting was chaired by the Speaker of the Senate of the Parliament of Kazakhstan Maulen Ashimbayev.

Asset Irgaliyev noted that the pandemic has accelerated structural changes in all spheres of life that will shape the global economy in the "post-covid era". Among the trends are: widespread digitalization, rapid growth of breakthrough innovations, deglobalization and regionalization, fragmentation of world trade, tougher global competition for investment, accelerated transition to a "green" economy, and increasing inequality.

"Thanks to the measures of state support, 3 packages of anti-crisis measures have been implemented. These are urgent measures to support the population and businesses, operational measures to preserve socio-economic stability and a comprehensive plan to restore economic growth. As a result, the GDP growth rate for the first 4 months of 2021 reached a positive zone for the first time since March last year, amounting to 0.7%," the head of the Ministry of National Economy said.

700 thousand entrepreneurs received tax breaks in the amount of 1 trillion tenge, 40 thousand projects of entrepreneurs received preferential loans. About 80% of borrowers in the affected industries received loan deferrals, and 7 million Kazakhstanis received payments for loss of income during the state of emergency and quarantine.

According to the minister, as part of the updated Comprehensive Plan to Restore Economic Growth for 2021, more than 60 support measures are being provided. They are aimed at reducing the burden on business, facilitating entrepreneurs ' access to finance and demand markets, and introducing new regulatory policies.

"As a result of the implementation of all measures, the number of people employed in SMEs will grow from 3.5 million to 4 million, and the share of SMEs in GDP will increase from 30% to 35% by 2025. The state's share in the economy will be reduced to 14%, " Irgaliyev said.

To attract investment, measures will be implemented to integrate into global and regional production chains, search for new niches based on competitive advantages, and proactively attract foreign direct investment and multinational companies from the Global-2000 list to the manufacturing industry and the agro-industrial complex.

"The qualitative growth of the economy will be supported by maintaining fiscal stability and effective monetary policy, as well as the development of the financial market. The changes taking place today, provoked by the coronavirus pandemic, open up the possibility of a forced structural transformation of the Kazakh economy, " the Minister of National Economy concluded.