National Bank of Kazakhstan reveals updated macroeconomic forecast, anticipates stronger GDP growth

BAKU, Azerbaijan, March 1. National Bank of Kazakhstan modified its earlier forecasts on the gross domestic product (GDP) growth, and expects the national economy to expand by 3.5-4.5 percent annually during the next three years, Trend reports, citing the National Bank.

The Bank explains the economic expansion through the expected increase of oil exports, as well as the improvement of the economic situation in the most important trading markets. Sustainable domestic demand growth will be supported by stimulating government spending and favorable oil prices.

However, the National Bank considers two factors that pose a risk to the economic improvement of Kazakhstan. Fulfillment of the oil production plan is considered the major risk, while the presence of transport and logistics bottlenecks is another issue that can impact the growth rate negatively.

Despite the projected economic growth, the National Bank considers that inflationary pressure remains a threat.

Earlier, the National Bank of Kazakhstan revealed that the base rate will remain unchanged to prevent inflation from increasing. Consequently, the base rate was reaffirmed at 16.75 percent. The next macroeconomic review will be published on 6 March, while the next decision on the base rate change will be revealed on 7 April.