Aset Irgaliyev met with members of the Senate Young Experts Club

Today, at a meeting of the Club of Young Experts, Minister of National Economy Aset Irgaliyev spoke about the development of the economy of Kazakhstan in the context of a pandemic, as well as about global trends caused by the coronavirus crisis. The meeting was chaired by the Speaker of the Senate of the Parliament of the Republic of Kazakhstan Maulen Ashimbayev.

Opening the meeting, the Chairman of the Senate noted that large-scale measures have been taken in Kazakhstan to support citizens and ensure the country's economic stability. About 4.5 million Kazakhstanis received compensation payments for loss of income, including pensions, benefits, salaries of medical personnel were increased. On behalf of the Head of State, a large package of measures to support business was adopted.

In turn, Aset Irgaliyev noted that the pandemic has accelerated structural changes in all spheres of life, which will shape the world economy in the "post-covid era." Trends include widespread digitalization, the rapid growth of breakthrough innovations, de-globalization and regionalization, fragmentation of world trade, tougher global competition for investment, an accelerated transition to a green economy, and an increase in 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 business, operational measures to preserve socio-economic sustainability and a Comprehensive Plan to Restore Economic Growth. As a result, the GDP growth rate for 4 months of 2021 for the first time since March last year entered the positive zone, amounting to 0.7%, ” said the head of the Ministry of National Economy.

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

According to the minister, more than 60 support measures are envisaged as part of the updated Comprehensive Plan to Restore Economic Growth for 2021. They are aimed at reducing the burden on business, making it easier for entrepreneurs to access finance and demand markets, as well as 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 people, and the share of SMEs in GDP - from 30% to 35% by 2025. The share of the state in the economy will be reduced to 14%, ” the head of the economic department said.

With regard to attracting investment, measures will be implemented to integrate into global and regional production chains, search for new niches based on competitive advantages, proactively attract foreign direct investment and transnational companies from the Global 2000 list in 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 an accelerated structural transformation of the Kazakh economy, ” the minister added.

Concluding the meeting, Aset Irgaliyev thanked the experts for constructive proposals, expressed his readiness to discuss in detail the proposals received and take them into account in further work.