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Fitch forecasts Kazakhstan's real GDP to grow in 2021

Kazakhstan Materials 14 August 2021 10:29 (UTC +04:00)
Fitch forecasts Kazakhstan's real GDP to grow in 2021

BAKU, Azerbaijan, August 14

By Klavdiya Romakayeva - Trend:

Fitch projects Kazakhstan's real GDP growth this year at 3.5 percent, accelerating to four percent in 2022, Trend reports with reference to Kazinform.

It is reported that the international rating agency Fitch Ratings has confirmed the pre-pandemic sovereign credit rating of Kazakhstan at 'BBB', the forecast is 'Stable',

Fitch analysts note that Kazakhstan's stable rating reflects the country's strong fiscal position, strong foreign trade balance and low government debt. These factors allowed the country's economy to remain resilient to shocks associated with the pandemic and volatility in the energy market.

The stimulating effect of the current macroeconomic policy of the Government is especially noted due to the increase in expenditures to support business activity in the real sector of the economy and SMEs (Small and medium-sized enterprises).

In addition, the country's significant international reserves (47 percent of GDP in the first half of the year), which were supported by a significant return on investment in international financial assets and the rise in gold prices, are cited as one of the key factors in the sustainability of credit ratings.

The agency also points to a number of other factors that positively influenced the stable rating of Kazakhstan, including a flexible exchange rate, high capitalization, and a low share of non-performing loans from STBs (second-tier banks).

Earlier, on August 11, 2021, the credit agency Moody's raised Kazakhstan's rating to Baa2 with a stable forecast.

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