BAKU, Azerbaijan, Nov. 11
Trend:
Kazakhstan’s dependence on the situation in the global commodity market creates additional risks for the stability of the currency, domestic prices, the financial system, which requires additional efforts from the state policy, Renaissance Capital investment company told Trend .
The company said that Kazakhstan is one of the three key energy exporters in the region, along with Russia and Azerbaijan.
"High dependence on oil and gas production and export, which account for about 30 percent of GDP (including transportation and other services) and 65 percent of merchandise export are a source of opportunities and a medium-term challenge," Renaissance Capital said.
The company stressed that revenues from export of energy resources allowed Kazakhstan to ensure growth of revenues after the political transformation in the 1990s.
“Most of “protective mechanisms”, including budget savings in the National Fund, free floating exchange rate, inflation targeting, the economic diversification strategy, have been more or less worked out,” the company added.
“It is important for the new budget rule, which is now being discussed by the government, to be formalized,” the company said.