BAKU, Azerbaijan, Jun. 18
By Nargiz Sadikhova - Trend:
Asian Development Bank (ADB) has revised down its forecast for 2020 economy growth of Kazakhstan, Trend reports with reference to the Asian Development Outlook (ADO) 2020 report.
“The COVID-19 pandemic prompts a downward adjustment to the 2020 projection for Central Asia from 2.8 percent growth to 0.5 percent contraction. The 4.2 percent growth projection for 2021 is unchanged,” the report said.
Thus, the 2020 forecast for Kazakhstan was revised down from 1.8 percent growth to 1.2 percent contraction, with the growth forecast for 2021 only marginally adjusted from 3.6 percent to 3.4 percent.
“The first four months of 2020 saw contraction by 0.2 percent year on year. The service sector was the most significantly affected, shrinking by 4 percent, while growth remained positive in the rest of the economy,” the report said.
ADB said that mining grew by 6 percent, primarily from oil and gas extraction, but such growth is unlikely in the rest of this year as Kazakhstan adheres to oil production cuts agreed by the Organization of the Petroleum Exporting Countries and others (OPEC+).
“The government’s fiscal stimulus package, equal to 9 percent of GDP, is expected to mitigate the economic downturn,” the report said.
The ADB forecast also said that inflation rate forecast was revised from 6 percent previously to 7.9 percent in 2020, whereas 2021 inflation rate forecast was revised from 5.7 percent to 6.2 percent.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members - 49 from the region.
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