BAKU, Azerbaijan, May 13. Adverse spillover from economic sanctions imposed on Russia will slow Kazakhstan’s economic growth in 2022, the Asian Development Bank (ADB) told Trend.
The ADB noted that tightening monetary policy across the globe will further exacerbate these downward pressures.
"But Kazakhstan has substantial buffers to withstand the pressures and provide adequate response to stimulate demand. In this regard, government-led economic reform program that aims to raise household incomes and support economic activity could help limit spillover impact and support GDP growth in 2023. Nevertheless, 2023 can be quite challenging year due to substantial downside risks; and uncertainties on the longevity as well as on the magnitude and severity of sanctions on Russia. We intend to post the updated forecast of Kazakhstan’s GDP growth and inflation in June 2022. We are closely following the situation and are ready to adjust our support accordingly, as needed, in line with the government’s needs and request,” the ADB said.
The bank noted that ADB’s operations in Kazakhstan respond to major development challenges, which not only remain relevant but also becoming more acute – reducing income and spatial inequalities, lowering country’s dependence on commodity sector, and ensuring sustainable and climate-resilient economy.