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Kazakhstan|economy|April 11, 2022 / 02:42 PM
Real GDP growth in Kazakhstan is expected to slow to 1.5-2.0 percent in 2022 - World Bank

AKIPRESS.COM - Real GDP growth in Kazakhstan is expected to slow to 1.5-2.0 percent in 2022, says the World Bank’s latest Economic Update for the Europe and Central Asia region released on April 10.

Kazakhstan also relies on Russia for 40 percent of its imports. Trade disruptions, lower business confidence, and increased currency volatility will also lower growth.

Growth will also be lower due to the closure (due to storm damage) in March of Kazakhstan’s main oil pipeline (to Russia’s Black Sea), through which about 80 percent of Kazakhstan’s oil is exported. Based on current repair timeframes (up to a month), oil export volumes could fall by about 5-6 percent in 2022.

Further exchange rate depreciation, rising food prices, and wage increases will keep inflation high in 2022. Monetary policy is expected to remain tight in response.

Fiscal policy will continue accommodating public spending to improve household welfare and sustaining the business environment.

Measures include increased social assistance, rental subsidies, and compensation for businesses affected by the January protests.

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