1 City of Almaty City of Almaty is located in the south-east of the country. As of January 1, 2012 the area is 0.3 thousand square kilometers, the region's population is thousand people. Density of population over the region per 1 km is 4.0 people. Economy: transport: railway and highways, food, light and heavy industry. Almaty area is divided into 7 districts. The main socio-economic indicators of the region for 2011 are provided in the table. 1 Demography: Regions population is growing. In 2000 it was 1130 thousand people at the beginning 2012 – 1450 thousand people: As of January 1, 2012 Area, thousand square kilometers Share in total RK area, % Density for 1 square kilometer Index level in RK Population, thousand people Share in total RK population, % 2011 Economically active population Share in total RK EAP, % employed Share in RK index, % hired labor Share in RK index, % unemployed Share in RK index, % Monthly average nominal salary, Tenge Index level in RK Nominal population income (estimation), average per capita a month, Tenge Index level in RK Compared to previous year in % Level in RK GRP, billion Tenge Share in total RK GRP, % CPI (end of period), by December of previous year in % Index level in RK Volume of industrial product, billion Tenge Share in RK index, % Agriculture total output (services), billion Tenge Share in RK index, % Fixed asset investment, billion Tenge Share in RK index, % Retail trade, billion Tenge Share in total RK index, %

The number of employed population increases and unemployed population falls in both absolute and relative terms. For 10 years, from 2001 to 2011, the employed population has increased from 89 to 94%, while the number of unemployed people has fallen from 11 to 5%. Characteristic feature of the employed population dynamics is the growth of hired labor and the reduction of self- employed people. From 2001 to 2011 the number of hired labor has increased from 78% to 91%, the number of self- employed people has fallen from 22 to 9%. EAP structure corresponds to the average in Kazakhstan: 2 EAP of the region is increasing at a moderate pace and in 2011 it reached thousand people thousand people are employed, 41.7 thousand people are unemployed. The economically inactive population made up thousand people, it is below the level of 2000: Labor Force thousand people Economic ally inactive populatio n Economically active population Including: Unemplo yed Employed including: Hired labor Self- employed Economically active population (EAP)

Unemployment Level Changing the employed population structure is supported by a strong tendency of unemployment rate reduction from 12.1% in 2000 to 5.6% in 2011 and the growth of the economic activity of the population: 3 In 2011 unemployment rate in Almaty was above the average in Kazakhstan – 5.4%:

4 Quality of Life Cost of living has been growing steadily since 2003, and the values are above the average in RK: Share of population with income used for consumption below the poverty line is decreasing and it is below the average in Kazakhstan: Life expectancy at birth in the region is increasing and the values are above the average in Kazakhstan: Some of life quality indicators in 2011:

Enrollment share of the population aged 6-24 years has increased since 2001 and its values are above the average in RK: 5 Enrollment The number of students in technical and vocational education has been decreasing since 2007, despite an increase of regions population: The number of children in regular preschools has increased since 2001: The number of students in higher education has been growing at a moderate pace, despite the decrease of regions population:

Population Income Population Income Monthly average nominal salary per employee in Almaty for 2011 is 121,674 Tenge, that is above the countrys average – 90,028 Tenge: In the dynamics the average nominal salary per employee and the average nominal income per capita are ever-growing. The index of the nominal and real incomes showed a decline during the crisis in In these years the growth of nominal income was less than the consumer price index, i.e. revenue growth did not cover inflation: 6

Economy Despite the GRP growth, the citys share in total GRP of all the regions has fallen from 22.3% in 2006 to 17.89% in 2011: GRP growth in 2011 doesnt exceed the average growth of total GRP of all the regions of Kazakhstan and makes up 124.8% compared to 2010, against the total value of RK %: 7

Investment Fixed assets investment tends to stable significant growth, however, its values have decreased during the crisis in : The growth of fixed assets investment in 2011 didnt exceed the total average level of RK regions and made up 104.3% compared to previous year against 107.7% in general in RK: 8 The share of fixed assets investment in the Kazakhstans level of investment has decreased from maximum 16.4% in 2004 to 8.3% in 2011:

Agriculture The volume of production in agriculture has decreased compared to 2000 and made up 1.4 billion Tenge: 9 The share of the regions volume of production in agriculture in total Kazakhstans volume of industrys production. In % of countrys agricultural production was manufactured in the region:

Real Sector The growth of industrial production volumes was observed throughout the study period, excluding crisis years , when manufacturing volumes have decreased: 10 The share of industrial production in the Kazakhstans level has decreased from 4,6% in 2000 to 3.3% in 2011: Real sector industries with the highest values of production in 2010 are construction, production of food products, production and distribution of electricity, machine industry, production of finished metal products and etc. These industries have the significant share in the total production volume of RK and regions GRP:

11 The number of industrial enterprises has decreased sharply from 2006: The number of construction companies has increased since 2003, and decreased during the crisis: The number of working agricultural enterprises is growing: Sector Enterprises

12 Small and Medium Business The number of registered legal entities as of October 1, 2012 is The SME number is The structure of the enterprises number is close to the RK average level: SME share of the region's GRP is growing at a moderate pace and it is above the average level in RK:

13 Budget revenues of the city of Almaty in 2011 amounted to trillion Tenge, including trillion Tenge of transfers from the national budget. Expenses amounted to 323 trillion Tenge, including 52 trillion Tenge of transfers the national budget. Thus, the region is subventional: Interbudgetary Relations

Development Program for Almaty City for Main target indicators: GRP increase by 29% in 2015, compared to the level in GRP in % to the previous year shall reach 102.8, 103.6, 104.1, and 105.5% respectively. An increase of the share of industry in GRP from 5.8 to 8% in An increase of the share of the manufacturing industry in GRP from 4.9 to 6.0% in The fixed asset investment growth rate shall be 30-35%. Export of agricultural products shall increase by 30%. The number of operating companies in SMEs shall increase to 62%. The share of the population with income below the minimum cost of living shall decrease from 3.9% to 3.5% by Unemployment rate shall fall from 7.1% to 6.4%. Life expectancy shall increase by 2 years. Coverage of pre-school education of all children under school age shall rise from 30.8% to 72%. 14