By Raushan Nurshayeva
ASTANA, Nov 21 (Reuters) - Kazakh President Nursultan Nazarbayev urged businessmen and officials on Friday to spend sparingly, saying the oil-exporting nation has been hard hit by the global financial and economic crisis.
He also said the government would help troubled construction companies by purchasing apartments from them, but only at a fraction of the prices paid at the height of an economic boom fuelled by foreign borrowing.
"Everyone should start economising," Nazarbayev told businessmen and officials at a meeting in Astana. "I want to tell you and the population frankly: we are really going through a very tough period."
Kazakhstan's banks were hard hit by the global credit crunch and this year's economic downturn has cut demand for the central Asian country's oil and metals exports.
Gross domestic product is expected to grow 3 percent next year, a sharp decline from the 10 percent average seen since the beginning of the decade. The government plans to spend $21 billion to support the economy.
Nazarbayev said $3 billion of this package would go into construction, but the government will not pay much for apartments.
"I think it should be no more than $1,000 (per square metre) in Almaty and $700-800 in Astana," Nazarbayev said.
"If you agree, we will help you. If not, I think you'll go bankrupt."
Prices in Almaty peaked at about $3,000 per square metre before the credit crunch.
Nazarbayev said three other sectors -- small businesses, agriculture and key industrial projects -- would get $1 billion each.