The index of business activity in Kazakhstan has declined for two months in a row, according to the country’s National Bank. At the end of January, it was 48.4 points and 49 points in December of 2020.
The main reason for the index decline is the decreasing activity in the industrial sector, said Zhandos Shaymardanov, head of the monetary policy department of the National Bank. This rate, for example, dropped from 50.3 points in December 2020 to 49.4 points now. Another sector of the Kazakhstani economy losing its points is the service industry; the sector sliced from 48 points in December to 47.4 in January.
However, the construction industry is still busy with a lot of work. The rate of business activity has already entered the growth zone by rising from 49.5 points at the end of last year to 51.1 points now.
According to Shaymardanov, businesses from the production sector describe the current situation as negative. “Lower demand and the tax burden also affect businesses,” the official said.
The steepest decline of the business activity index was in spring 2020 when the first lockdown was set in place. At the time, the index dropped to 37.2 points, the sharpest decline in business activity over the year. As soon as the government lifted all the restrictive measures, the index rebounded to 44 points.