Kazakh National Bank plans to reduce inflation
By Sara Israfilbayova
Kazakh National Bank plans to reduce inflation to 4 percent by 2020, said Deputy Chairman of the Bank Oleg Smolyakov, at the presentation of the report of the IMF “Regional Economic Outlook: Middle East and Central Asia”.
Smolyakov noted that being a member of the IMF, Kazakhstan takes into account the recommendations and best practices of the organization in conducting monetary and fiscal policies.
According to him, the regulator’s efforts are aimed at achieving its main goal - ensuring price stability in the country, which means fixing inflation at a low level and reducing its volatility.
“Annual inflation decreased from 8.5 percent in December 2016 to 7.1 percent in December 2017, being in the target range during the year. Inflation continued to decline in 2018 to the level of 6.1 percent in September, which corresponds to 5-7 percent this year. For 2019, the inflation rate is set in the range of 4-6 percent,” he noted.
Earlier, the IMF forecasted 2.8 percent GDP growth in Kazakhstan in 2019. The main driver of the country’s GDP growth, according to IMF, is an increase of oil production, but medium-term prospects remain subdued.
In 2017, the forecast for GDP growth of the country amounted to 4 percent.
The growth of consumer prices in Kazakhstan in 2018 is projected at 6.4 percent, and in 2019 at - 5.6 percent. In 2017, this indicator amounted to 7.4 percent.
Previously, the government of Kazakhstan forecasted an increase in the growth rates of the economy, mainly due to stable oil prices on the world market.
The nominal GDP in Kazakhstan in 2018 is expected at 57.2 trillion tenge. This is higher than the indicator approved in August 2017 by 1.3 trillion tenge. Real GDP growth is expected at 3.8 percent (previously forecasted at 3.1 percent). GDP per capita will increase to $9,200.
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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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