Comment of Director of the Monetary Policy Department of the National Bank of the Republic of Kazakhstan Zhandos Shaimardanov Concerning Business Activity Index in July 2021

Results of received estimates demonstrate that business activity index in July fell and made 50.8 (51.6 in June).

The index was affected by a fall of the parameter in the service sector to 51.1 (52.7 in June), which is caused by deterioration in the business activity due to quarantine restrictions, dropping number of new orders and increasing delivery times. However, the indicator in the construction sector rose to 50.1 (47.6 in June) and in industry it almost did not change amounting to 50.5 (50.4 in June).

In terms of regions, July saw improved business activity in 10 regions and deterioration in 7. The highest level of business activity is reported in Turkestan Region (58.8) and Akmola Region (57.8), the lowest is in Eastern Kazakhstan Region (40.8).

In July 2021, respondents highlight worsening business environment in the country. Balance of answers related to assessment of the current business conditions stood at 0.5 (4.7 in June), which is attributed to resumption of restrictive measures due to aggravating epidemiological situation in Kazakhstan. Enterprises positively evaluated demand for products/ services, access to communications and finance/ loans. Issues of business protection and tax burden received negative assessments.

Optimism of enterprises with regard to the future business conditions for the next 6 months remained unchanged: assessment of future conditions was 21.1 (21.2 in June). As a result, business climate index for the economy fell to 10.5 (12.8 in June).

In July 2021, the survey involved 461 enterprises: 67 in construction, 175 in industry, 219 in service sector.

For more details please visit: https://nationalbank.kz/en/page/indeks-delovoy-aktivnosti-po-kazahstanu-ida