Sources: The Astana Times; EBRD; picture: newsland.com
In 2017, the European Bank for Reconstruction and Development projects Kazakhstan’s growth to reach 2.4 per cent, as “the external environment improves, resulting in stronger exports of oil, higher foreign direct investment and increased investment domestically.” At the same time, inflation is expected to decline to 7.5 percent.
For 2016, the organization projects 0.7 percent growth. 2015s growth rate was 1.2 percent. Average annual inflation for 2016 can be expected to reach 14.8 percent.
“Monetary conditions in Kazakhstan have improved, the exchange rate has stabilized and inflation is on a downward trend, albeit from a high level (inflation decreased from 17.7 percent year-on-year in July 2016 to 16.6 percent in September),” said the report.
According to the EBRD, factors including low oil prices, subdued growth in Russia and economic challenges in China “continue to depress growth, which is exaggerated by the negative impact of regional risks and global and domestic security incidents on consumer, business and investor confidence.”
In the nearest future Kazakhstan will continue to rely on state support programmes, state-owned and quasi-state-owned enterprises to drive growth, states the report.