The crisis is only about to start in Kazakhstan

Kazakhstan is facing a real crisis, the country's president Nursultan Nazarbayev announced during a meeting with Prime Minister Karim Masimov, reports press office of the president.

Nazarbayev stressed that the country’s economy is functioning in a difficult manner. “While commodities prices are sinking, budget revenues have shrunk by 40%. Besides, prices for other export gods have decreased, including ferrous and non-ferrous metals, coal. At the same tie, our agriculture secures only a small growth, while factories, including machinery industry, have cut production,” the Kazakh president said. He pointed out that his conclusions on difficult situation in global markets are based on his talks with China, USA and Russia.

“Taking into account the current situation in the global economy, including Europe and East Asia, one cannot expect a soon improvement. Our people should be aware of the current situation, which means lowering incomes for our factories, lowering incomes and possible job cuts. The real crisis is coming, it will be stronger than the one in 2007-2009. In this connection, I see the government is to analyze the situation, make up an anti-crisis plan, set necessary measures and inform the public,” Nazarbayev said. He stressed he would not allow worsening of social state of the people.

“The Nurly Zhol program lets me implementing the employment action plan, expand opportunities for acquiring new professions. Thus, people will have an opportunity if needed to have a new profession at their companies. Besides, we need to prepare an action plan to support vulnerable groups of the population,” he added.

Nazarbayev also called it important to raise production and capacity utilization indices. “Our companies should wait and see that the government gives money to them. I prohibit using finances from the National Fund for construction of new facilities and subsidizing ineffective companies. This situation will show what plants are efficient. Besides, we are conducting privatization to attract more effective management,” the Kazakh president said.