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Wednesday, May 27, 2020

IMF: Lower oil prices, other factors weigh on Kazakh growth

At the conclusion of the International Monetary Fund's (IMF) mission to Kazakhstan, it released a statement on Tuesday regarding its finances and macroeconomic scope.

The statement said a challenging external economic environment has adversely affected growth in the country. It said growth was slowing and expected to reach 4.3 percent this year, compared with 2013's 6 percent. This slowdown is primarily driven by weak demand on domestic and international fronts, specifically from China, Russia and Europe. This is exacerbated by falling oil prices.

The IMF estimates the nation's growth will be 4.5 to 5.5 percent for 2015, despite stimulus efforts taken by the government.

In the face of an economic slowdown, the stimulus is considered a positive step, albeit a temporary solution for the next three to five years. Reform in the fiscal framework is necessary for the country to have consistency in its financial standing. The stimulus under the proposed conditions would be more beneficial.

The IMF supports the Central Bank's overhaul of fiscal policy in a bid to target inflation.

Organizations in this Story

International Monetary Fund

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