Baku, Azerbaijan, Nov. 14
By Rashid Shirinov – Trend:
Kazakhstan’s GDP is forecast to grow by 4 percent in 2018 and 3.5 percent in 2019 due to slower oil output expansion, the European Bank for Reconstruction and Development (EBRD) said in its Transition Report 2018-2019.
"Large investment projects in oilfield development and gas supply will continue to support the country's growth," said the report.
EBRD believes that domestic consumption will also recover somewhat after growing by a meager 1.5 percent in 2017, boosted by increases in real wages and an expansion of lending to households.
The Bank also noted that risks to Kazakhstan’s growth outlook stem mainly from banking sector difficulties and a possible slow-down in external demand for commodity exports.
In addition, the report notes that Kazakhstan’s financial sector development is advancing.
"An important development for regional financial sector development was the launch of the Astana International Financial Centre (AIFC) in July 2018. The new center has already attracted over 80 financial and non-financial firms," EBRD said.
Within the AIFC, the Astana International Exchange (AIX) started operating with Shanghai Stock Exchange and NASDAQ as its key strategic partners.
Kazakhstan joined EBRD in July 1992. Cumulative EBRD investment in the country to date amounted to 7.45 million euros. In Kazakhstan the Bank focuses on diversification, balancing the role of state and market and sustainable energy.
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