Kazakhstan: Industrial production expands slightly for second consecutive month
August 15, 2016
Industrial production in Kazakhstan is showing signs of a mild improvement. Industrial output increased 0.1% year-on-year in July, which matched the expansion in June. Although fragile, the increases in June and July together point to the beginnings of a recovery in the battered industrial sector.
July’s expansion showed a broad-based improvement. Manufacturing output advanced strongly to a 1.5% annual increase in July from a 0.3% rise in June. Electricity, gas and steam generation expanded at the fastest pace since November 2014, while water management grew at the strongest rate in nearly four years. Conversely, mining and quarrying, which had rebounded strongly in June, returned to contraction in July.
Due to July’s improvement, the deterioration in industrial production softened. The annual average variation in industrial production rose from minus 2.8% in June to minus 2.6% in July.
With the Kashagan oil field expected to resume production in the fourth quarter, industrial production is seen improving further later this year.
Author: Ricardo Aceves, Senior Economist