S&P Global Ratings Affirms Kazakhstan’s Sovereign Credit Ratings at Stable Outlook

NUR-SULTAN – The S&P Global Ratings international rating agency affirmed the sovereign credit rating of Kazakhstan at the level of stable outlook.

This year, the sustained fiscal policies and expectations of economic recovery were the main factors for determining the credit rating, according to the agency.

In 2020, fiscal support measures from the government became one of the main factors in ensuring the stability of the economy and preventing sharp fluctuations in the level of welfare recipients in the population.

It is estimated that the economy of Kazakhstan will fully recover from the contraction of 2020 by the end of 2021. This year, the GDP growth rate is expected to be 3.5 percent considering the background of ongoing measures to diversify the economy and increase the share of the private sector. 

The stable dynamics in the processing sector, increase in the investment activity, weakening of restrictions associated with the pandemic and a recovery in foreign trade will boost economic growth in 2022. The recovery in the oil sector amid easing production restrictions from OPEC+ and the expansion of production at the Tengiz oilfield will also contribute to economic growth.

The growth rate of the economy will reach about 3.6 percent on average in 2021-2024. 

Recently, the Fitch Ratings affirmed Kazakhstan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at BBB with a stable outlook. Moody’s Investors Service (Moody’s) upgraded Kazakhstan’s rating outlook to stable from positive on Aug. 11. 

It was reported that the anti-crisis macroeconomic policy of  the Kazakh government has mitigated the impact of the pandemic and made it possible to launch the process of restoring economic growth rates. The government plans to ensure economic growth reaches 3.9 percent in 2022. 

In the first seven months of 2021, GDP growth reached 2.7 percent, driven by growth in industry (+2.5 percent), construction (+11.1 percent), and agriculture (+2.4 percent).

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