Kazakhstan’s robust economic growth in 2019 due to strong consumption and investment - IMF

AKIPRESS.COM - Kazakhstan's robust economic growth performance in 2019 supported by strong consumption and investment, the IMF said in press release.
Kazakhstan's recovery has continued, with growth in the first nine months of 2019 reaching 4.3 percent, the report says.
High domestic demand driven by major oil and gas investments and government and household consumption supported by wage increases and consumer lending has underpinned the economy's strong performance. Headline inflation picked up but has remained within the National Bank of Kazakhstan's target band of 4-6 percent and stabilized in recent months. Lower oil prices and higher imports have weakened the external position, and the current account balance has deteriorated. The exchange rate depreciated in the second half of 2018 but has been relatively stable since then in the absence of large shocks. Over the next few years, growth is expected to slow down, largely reflecting flat oil production; non-oil growth is expected to remain robust. Risks are on the downside, reflecting trade tensions and commodity price volatility.
In response to demand pressures and inflationary risks, the NBK raised the policy rate by 25 basis points in September. Liquidity in the banking sector remains ample and credit growth is concentrated in the retail sector. Efforts have continued to clean up the banking sector, including through additional financial support from the state. Notwithstanding strong non-oil revenue performance, a looser fiscal stance is expected in 2019, due to new spending initiatives, including higher public sector wages, financial support to the vulnerable, and regional development initiatives.
On January 27, 2020, the Executive Board of the International Monetary Fund (IMF) concluded the 2019 Article IV consultation with Kazakhstan.