ASTANA, Kazakhstan, July 19. Kazakhstan's 2023 economic growth forecast has been revised upwards to 3.9 percent, Trend reports.
According to the Asian Development Bank (ADB), this adjustment accounts for the higher growth observed in the first quarter of 2023 and the expansion of domestic demand following a 10-percent increase in fiscal stimulus due to budget revision in March.
Notably, GDP growth accelerated to 5 percent year-on-year in 1Q2023, with manufacturing and services increasing by 5.4 percent and 5.3 percent, respectively, reflecting sustained domestic demand.
Furthermore, ADB expects private consumption to continue its acceleration as inflation eases and households experience higher real incomes. Continued social spending and a longstanding expansionary fiscal policy will provide support for public consumption. The inclusion of large infrastructure projects in the 2023 fiscal stimulus is set to boost investment.
Export growth will be fueled by a gradual increase in oil output, which reached 1.6 million barrels per day in April 2023, nearing Kazakhstan's quota under agreements with other petroleum exporters. Additionally, improved demand from Kazakhstan's trade partners will further bolster exports.
Looking ahead, the growth forecast for 2024 remains unchanged at 4.1 percent, the ADB added.