ADB forecasts economic growth in Kazakhstan
Baku, Azerbaijan, Apr. 6
By Elena Kosolapova – Trend:
The Asian Development Bank (ADB) forecasts economic growth in Kazakhstan to accelerate in 2017, reflecting continued fiscal spending to stimulate consumption and investment, and higher earnings from oil exports, the bank said in its new report published April 6.
In its Asian Development Outlook (ADO) 2017, ADB forecasts Kazakhstan’s gross domestic product growth to reach 2.4 percent in 2017 and 2.2 percent in 2018, from the 1 percent registered in 2016.
Annual inflation in 2017 is projected at 8 percent — within the National Bank’s target range of 6-8 percent — as authorities adjust the policy rate, use open market operations to control monetary growth, and maintain monopoly price controls. The report, however, notes the need to strengthen the banking sector as a key policy challenge.
The ADO suggests Kazakhstan’s industry will expand by 2.4 percent in 2017, boosted by high infrastructure spending and increased production of oil and gas condensate. Oil production is expected to rise by 3.8 percent to 81 million tons with higher production at the Kashagan oil field compared to last year, and expansion of the Tengiz oil field. Agriculture is projected to grow by 3.5 percent in 2017 as a result of the new state support program.
Since joining ADB in 1994, Kazakhstan has received about $5 billion in sovereign and non-sovereign operations for agriculture, irrigation, education, finance, transport, as well as water supply and sanitation sectors. ADB’s support helped the country open up transport routes, foster private sector enterprises, support social equality, and develop knowledge products. Regional cooperation initiatives under the Central Asia Regional Economic Cooperation program remain an integral aspect of ADB operations in Kazakhstan.
Follow the author on Twitter: @E_Kosolapova