BAKU, Azerbaijan, June 9
By Nargiz Sadikhova - Trend:
Real growth of Kazakhstan’s GDP is forecast to be 3.2 percent in 2021, World Bank’s (WB) “Global Economic Prospects” report said, Trend reports citing the report.
Thus, the point difference from the WB’s forecast published in January is 2 percent. In Central Asia, growth is forecast to recover to 3.7 percent in 2021 and 4.3 percent in 2022— well below historical averages.
The economy is expected to be supported by a modest rise in commodity prices, relaxation of OPEC+ production cuts (Kazakhstan), and firming FDI as the subregion deepens its global and regional integration.
Furthermore, WB also forecasts that Kazakhstan economy will grow by 5 percent in both 2022 and 2023.
Previously, WB forecast that Kazakhstan’s real economy growth will equal 6 percent in 2022.
In Uzbekistan, growth should continue to benefit from the implementation of an ambitious reform agenda, which progressed last year despite formidable headwinds from the pandemic. However, the rebound in Central Asia has been dampened by rising policy uncertainty, particularly in the Kyrgyz Republic, following political tensions and social unrest.
Geopolitical tensions have also increased in Central Asia amid conflict over a border dispute between the Kyrgyz Republic and Tajikistan. Rising inflationary pressures prompted increases in key policy interest rates in the Kyrgyz Republic and Tajikistan.