BAKU, Azerbaijan, Feb. 7
Trend:
Inflation in Kazakhstan is expected to slow down to the upper threshold of the 4-6 percent target corridor by the end of 2022, Chief Economist of the Eurasian Development Bank (EDB) and Eurasian Fund for Stabilization and Development (EFSD) Evgeny Vinokurov said, Trend reports citing the EDB.
“Separately, we should dwell on the economic situation in Kazakhstan. During the state of emergency in the first half of January, economic activity in the country weakened. The main damage was done to the service sector. We believe that a slight slowdown in economic activity will be leveled out in the shortest possible time,” Vinokurov stated.
He added that since the damage is compensated from budgetary sources, and the service sector growth recovers, the economy will return to sustainable growth already in the first quarter of 2022. The economist also announced the expectations about a possible increase of Kazakhstan’s GDP of 4 percent by the end of 2022.
Both the increase in the base rate and the effectiveness of regulatory measures taken by the government will help curb the rate of price increase. At the same time, the risks of maintaining inflation at an elevated level have increased.