EDB forecasts growth of Kazakhstan’s economy
Kazakhstan’s GDP will grow almost 5 percent a year on average in 2021-2022. Eurasian Development Bank announced its forecasts for the state for the next two years. According to the EDB analysts, the situation with COVID-19 pandemic has resulted in an unprecedented drop in global business activity and international trade. Thereby, the economy of Kazakhstan was affected as well, shrinking by 1.8 percent in the first six months of this year. However, the anti-crisis support of the government helped mitigate the negative impacts of the pandemic on the economy. According to Aigul Berdigulova, Senior Analyst at the EDB, easing quarantine restrictions, effective measures of state support as well as maintaining stimulating monetary and fiscal policies will be conducive to economic recovery of Kazakhstan. The bank experts said that due to such measures, the GDP growth dynamics will improve the next year and the country will be able to return to the pre-crisis production level.
“The authorities of Kazakhstan used a wide package of state support measures, the volume of which is very high, according to preliminary estimates, it is approximately 8-9 percent of the Gross Domestic Product. This has certainly supported the economy during such a difficult time. In these conditions, we forecast that the country's GDP by the end of 2020 will decrease by 2.5 percent. In the next two years, we expect a mitigation and an attenuation of the effect of the pandemic, which in combination with stimulating social and foreign credit policies will form conditions for active economic growth several times over,” said Aigul Berdigulova, Senior Analyst of the Eurasian Development Bank.