Kazakhstan talks forecasted growth level of GDP for late 2021

Kazakhstan Materials 6 December 2021 17:55 (UTC +04:00)
Kazakhstan talks forecasted growth level of GDP for late 2021

BAKU, Azerbaijan, Dec. 6


The expected growth of Kazakhstan's GDP by the end of 2021 will remain at the level of 3.7 - 4 percent according to the updated baseline scenario, Trend reports referring to the National Bank.

The main contribution is expected from domestic demand and exports. Household consumption will continue to recover further amid growing household incomes and brisk growth in consumer lending.

The growth in gross capital formation will be associated with the growth of investments by enterprises in the main sectors of the economy. Additional support will be provided through investments in housing construction.

At the same time, amid the growing domestic demand, imports will restrain faster GDP growth. There will be a recovery in exports amid a gradual easing of OPEC + restrictions on daily oil production, as well as an increase in economic activity in trading partner countries.

A negative contribution will be observed from consumption by public administration bodies due to a slowdown in government spending on wages and the purchase of goods and services.

GDP growth rates in 2022 have been revised toward a slight decrease to the level of 3.9-4.2 percent due to a moderate increase in economic activity in the countries being trading partners of Kazakhstan and a more negative impact on the country’s economy from disruptions in global and local supply chains.

The economic growth will be facilitated by a gradual improvement in the epidemiological situation [in terms of COVID-19] and an increase in energy production compared to 2021.