BAKU, Azerbaijan, April 26. Kazakhstan’s economy is set to experience a moderate growth acceleration, with real GDP forecast to rise by 3.5 percent in 2023 and 4 percent in 2024, Trend reports via the Kazakhstan Economic Update report of the World Bank.
According to the report, this growth is due to the hydrocarbons sector, as oil production increases.
"Several new projects, including the expansion of production capacity at the Tengiz field, are expected to further boost exports and contribute to growth in the petrochemical industry," said the report.
As noted in the report, despite the uncertainty surrounding demand in major exporting markets and high inflation domestically that has resulted in a loss of purchasing power, Kazakhstan's real GDP is expected to exceed its potential level, keeping up inflationary pressure that is likely to persist above the target level.
"In the medium term, the economy is projected to maintain its solid growth trajectory, albeit with a slight moderation to an annual average rate of 3-3.5 percent, in line with its estimated potential growth rate, after a temporary boost in 2024 driven by the launch of a new oil project," said the report.