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By Trend

World Bank has increased its GDP growth forecast for Kazakhstan for 2020 announcing it to be 3.7 percent compared to 3.2 percent previously, Trend reports with reference to the January Global Economic Prospects report published by World Bank (WB).

According to the report, WB forecasts that Kazakhstan’s GDP growth will be 3.9 percent in 2021 and 3.7 percent in 2022.

According to WB, activity in Kazakhstan will likely be dampened by the waning effect of earlier fiscal stimulus, modest or slowing growth in key trading partners (Russia, China), and low productivity.

In Eastern Europe and Central Asia, the pace of growth depends on the successful implementation of structural reforms to improve the business environment, achieve debt sustainability, and restructure state-owned enterprises to improve competition, the report said.

The report also said that Kazakhstan, being an energy exporter, will remain vulnerable to large swings in global commodity prices, particularly when accompanied by heightened volatility.

Overall, according to the report global growth is projected at 2.5 percent in 2020, just above the post-crisis low registered last year.

"While growth could be stronger if reduced trade tensions mitigate uncertainty, the balance of risks is to the downside. A steep productivity growth slowdown has been underway in emerging and developing economies since the global financial crisis, despite the largest, fastest, and most broad-based accumulation of debt since the 1970s. These circumstances add urgency to the need to rebuild macroeconomic policy space and undertake reforms to rekindle productivity," the report said.

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