ASTANA (TCA) — The European Bank for Reconstruction and Development (EBRD) on November 7 said it is expecting the economy of Kazakhstan to grow by 3.8 per cent in 2017 and by 3.5 per cent the following year. The increased crude oil production, favourable oil prices, a recovery in real incomes growth as well as stronger activity in construction, agriculture and transportation sectors have all contributed to strong GDP growth.
The Bank’s May forecast for the country predicted the economy growth of 2.4 per cent by year end. The EBRD is also expecting inflation to remain within the 6-8 per cent range set by the country’s central bank in 2017-2018.
The EBRD says that non-performing loans (NPLs) still weighing on Kazakhstan’s banking sector, but a new momentum for resolution is seen and the banking sector consolidation will also help clean up balance sheets of Kazakh banks with the largest non-performing loans.
The EBRD has revised up sharply its 2017 economic growth forecasts, with higher export levels, a revival in investment and firmer commodity prices supporting a broad-based upswing. Average growth across the EBRD region is seen at 3.3 per cent this year, a rise of 0.9 percentage points against the previous forecast from May, and compared with growth of just 1.9 per cent in 2016.
The EBRD tracks the economies of 37 emerging countries, where it finances projects and supports reforms that promote sustainable and environmentally-friendly market economies.
