NUR-SULTAN – The European Bank for Reconstruction and Development (EBRD) adjusted the forecast of Kazakhstan’s real GDP growth rate for 2021 from the previous 3.0 percent to 3.6 percent in its biweekly review on June 28, reported the press office of the EBRD.
The EBRD’s forecast for Kazakhstan’s real GDP Growth in 2022 has also increased to 3.8 percent. The observable slow economic recovery that the country has experienced this year is explained by higher oil prices, fiscal stimulus and the recovery of private consumption.
Real GDP grew by 0.7 percent between January and April 2021 compared to 0.2 percent decrease in the same period of 2020. Construction is reported to be the main thriving industry of the Kazakh economy today, along with manufacturing, agriculture and trade.
According to the EBRD, the improvement of Kazakhstan’s economy was made possible by the rollout of the vaccination program and the maintenance of public safety. The Kazakh government’s comprehensive crisis mitigation package, relaxed loan policies, tax exemptions, as well as support payments to individuals, are all credited as crisis response policies that help the country mitigate the recession of 2020.
However, the unpredictability of the situation due to the coronavirus pandemic still represents a high risk for the country’s recovery.
Earlier this week, the World Bank also shared its report on Kazakhstan’s economy where it highlighted the work done to minimize the economic consequences of the global health crisis.
Both the EBRD and the World Bank emphasize the urgency to contain the epidemiological situation under control in order to ensure stable economic growth. Vaccination is seen as the most important tool to facilitate the recovery of Kazakhstan’s economy.