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Monday, September 25, 2017

World Bank: Gradual relief from sluggish growth possible in Kazakhstan

In the World Bank's most recent economic forecast report for Kazakhstan, released Monday, it says external pressures are slowing GDP growth in the country.

Negative supply-and-demand factors suggest the country will experience slowing growth, namely diminishing oil output, less demand for Kazakhstan's metal products abroad and sluggish domestic demand overall. The nation implemented an expansionary stimulus to boost domestic demand and stabilize exchange rates.

The uncertainty of the country's and region's economic environments, combined with geopolitical tensions, led to the bank predicting total growth for the year at 4.1 percent, with a gradual rise to 5.5 percent by 2017, assuming oil production picks up with offshore drilling lines opening in 2016. Further slowdowns in metal production and continued sluggish demand for oil may hurt the medium-term outlook and put additional pressure on the currency.

Should that come to pass, the government has remedies ready that would help mitigate the social aspects of further economic turbulence.

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