IMF revises upward forecast for Kazakh GDP growth
By Kamila Aliyeva
The International Monetary Fund (IMF) increased its forecast for
Kazakhstan’s economy growth in 2017.
In its Concluding Statement on the country the IMF projects
Kazakhstan’s economy growth to reach 2.5 percent in 2017.
Non-oil growth should reach 4 percent by 2021, the IMF said, noting that this will reflect a further increase in oil production, impact of structural reforms, and unlock of bank lending.
The external current account is projected to improve with higher exports, and inflation should fall within the National Bank target band of 6 to 8 percent in 2017. Uncertainty is significant, however, given dependency on commodity price developments.
The IMF noted that Kazakhstan continues to withstand challenges related to lower oil prices and slower growth in Russia, China and Europe. The authorities’ response—targeted fiscal support, exchange rate adjustment, strengthened domestic liquidity management, and structural reforms focusing on the business climate and public administration—has helped stabilize conditions.
In "World Economic Outlook" published in October 2016 IMF expected Kazakhstan’s GDP growth to reach 0.6 percent in 2017.
According to the IMF, Kazakhstan’s economy growth in 2016 was positive, 1 percent, reflecting an increase in oil production and supportive policies, notably Nurly Zhol state program, which provided funding for infrastructure, SMEs, and housing.
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