Kazakhstan’s Economy Grows in March, Mining Sector Lags Behind
Kazakhstan has experienced growth in its Business Activity Index (BAI) in March, reaching 51.7 points despite supply chain bottlenecks, according to Rustem Orazalin, director of the monetary policy department at the National Bank. The BAI indicates the state of the economy in the real sector, providing insights into the dynamics of economic trends and business cycle turning points.
While all sectors in the economy witnessed an increase in new orders and inventories, the mining industry failed to keep pace with the rest of the sectors. Orazalin reported that positive changes were observed in all BAI components, except for delivery time, across various fields. However, the mining sector’s index only saw a slight improvement, rising from 46.7 to 48.6 points, remaining in the negative zone.
The mining sector’s sluggish performance can be attributed to extended delivery times, lower employment, and reduced production volume. These factors have weighed down the industry’s growth potential, keeping it from expanding alongside the other sectors in Kazakhstan’s economy.
In contrast, the manufacturing industry experienced a significant boost, with its index surging from 49.8 points to 53.1 points, moving from the negative to the positive zone. Additionally, the construction and service sectors also saw growth, with their indices reaching 53.6 and 51.6 points, respectively.
The overall business climate index, which reflects the average assessment of current and future business conditions, increased notably from 12.8 points to 16.5 points. Respondents cited improved business conditions in March and expressed optimism for a more favorable environment in the future.