Kazakhstan: Industrial production shows incipient increase in February
March 16, 2016
The deterioration in Kazakhstan’s industrial production is showing signs of abating. In February, industrial output rose 0.1% over the same month last year. Although the increase was marginal, it marked the first positive reading since July 2015, which was the first month in which industrial production began to contract uninterruptedly. February’s rise resulted mainly from an expansion in manufacturing output, while mining and quarrying, electricity generation and water supply and sewerage contracted. The contractions, however, were softer than in the previous month.
Although industrial production stopped contracting in February, the inertia of the deterioration continued as the trend still pointed downward in February. The annual average variation in industrial output inched down from minus 1.6% in January to minus 1.7% in February, which marked a multi-year low.
On 17 March, Sauat Mynbayev, the Chairman of the state-owned energy firm KazMunayGaz said that the Kashagan oil field is expected to relaunch production in October, following three years of no operations.
Author: Ricardo Aceves, Senior Economist