Number of poor people in Kazakhstan increases due to inflation

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International Business News – The number of poor people in Kazakhstan has increased, said the Minister of Labor and Social Protection Tamara Duisenova at a press conference on the work of the government.

During the press conference, journalists asked the minister whether citizens of Kazakhstan became poorer during the economic and post-epidemic crisis. The minister gave an affirmative answer. Yes, he said, this is mainly due to high inflation in the country.

Tamara Duisenova said that the number of poor citizens of Kazakhstan has indeed increased. The index was at the level of 4.9% in the past years, and now the poor people are already 5.1% of the total population. Previously, food accounted for 50% of the population’s income, while now people are spending 70% of their income on food. Currently, many people have reduced the amount of money spent on food outside of the household budget.

At the end of the third quarter of last year, the unemployment rate in Kazakhstan was 4.9%. This figure has remained unchanged since the third quarter of 2020, when the number of unemployed people was 5% of the labor force.

The Ministry of Labor also said that from January 1, 2023, the amount of unemployment social benefits paid from the State Social Insurance Fund in Kazakhstan will increase by an average of 13 percent.

On January 11, the Prime Minister of the Government of Kazakhstan instructed to reduce the inflation rate from 20.3% to 9.5% in 2023.