December 02, 2008

Kazakhstan industrial growth slows down in Q1

Reuters reported that Kazakhstan's industrial output growth stalled in the first quarter of this year due to a fall in copper and steel production in a key industrial region.

The statistics agency said industrial production grew at a slower pace of 3.7% YoY in the first quarter of 2008 compared with almost 10% YoY in the same 2007 quarter. Industrial output growth was 10% MoM in March up from 4.3% in February. In YoY terms growth was 4.2% in March 2008.

Ms Aigul Yepbayeva head of the agency's macroeconomic department, told Reuters slower growth was due to a cut in copper and steel output in the industrial region of Karaganda. She said "We are talking about Kazakhmys corporation which has explained it is gradually decreasing production."

Ms Yepbayeva said there was also a decrease in steel production in March at ArcelorMittal's Temirtau production facility in Karaganda. The company had previously forecast a 13% rise in total 2008 production. She said "The same problem can be seen at Temirtau. There is a fall in rolled steel output". ArcelorMittal Temirtau could not be immediately reached for comment.