Asian Development Bank forecasts 5.2 percent GDP growth in Kazakhstan in 2013
Azerbaijan, Baku, June 3 / Trend E. Kosolapova/
GDP growth in Kazakhstan will hit 5.2 percent in 2013 and 5.6 percent in 2014, Asian Development Bank forecasts in the report 'Outlook 2013: Asia's Energy Challenge'.
"GDP is forecast to grow by 5.2 percent in 2013 and 5.6 percent in 2014, largely reflecting higher domestic demand, including investment spending under the industrialization program and the more active investment of National Fund of the Republic of Kazakhstan assets," ADB said in the report.
Inflation is expected to remain moderate but toward the middle of the central bank's 6-8 percent target range, reflecting the continued administration of prices, the use of special food stabilization funds in the regions, and a conservative monetary policy. Tariffs for services, including transport and communal utilities, will continue to rise in 2013, affecting the cost of all goods.
Fiscal policy is expected to remain somewhat expansionary, with a bias towards spending for industrialization, social modernization programs, and social safety nets. However, the republican budget deficit is forecast to narrow to 2.1 percent of GDP in 2013 and 1.8 percent in 2014. The budget deficit will be covered through internal and external borrowing, including about $1 billion in sovereign Eurobonds in 2013-$500 million in the first half of the year.
Republican budget revenues, including transfers from the National Fund of the Republic of Kazakhstan, are forecast to slide from 15.5 percent of GDP in 2012 to 14.8 percent in 2013 and 13.5 percent in 2014. Tax receipts should gradually rise from 62 percent of revenue in 2012 to 74 percent in 2014, while transfers from the National Fund of the Republic of Kazakhstan should remain unchanged in 2013 and decline in 2014. Revenue could be higher if the Kashagan and Karachaganak projects start operations in 2013.