Eurasian Development Bank Forecasts 4.4% Economic Growth in Kazakhstan in 2024-2025

ASTANA – Kazakhstan’s economic growth could reach 4.3% in 2023 and 4.4% in 2024-2025, according to the Eurasian Development Bank’s (EDB) macroeconomic outlook report for 2023-2025, published on June 1.

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“The government’s initiatives aimed at diversifying the economy, strengthening investment potential, and expanding production capacity will support economic activity,” reads the report.

Strong domestic demand and increased mutual trade will also ensure high growth rates by the end of 2023 in other EDB member states. Armenia’s gross domestic product (GDP) is projected to increase by 7.5%, the Kyrgyz Republic’s GDP by 4.2%, and Tajikistan’s GDP by 7.9%.

Inflation is projected to be 2.5% in Armenia, 7.8% in Belarus, 7.9% in Kazakhstan, 7.1% in the Kyrgyz Republic, 6.1% in Russia, and 6.6% in Tajikistan.

According to the EDB, the projected slowdown in inflation paves the way for national banks in most countries to reduce their key rates in the medium term.

“The National Bank of Kazakhstan may initiate a gradual reduction of the base rate starting in the second half of 2023. There is a potential for its reduction to 15% by the end of the year, compared to 16.75% at the end of May,” the report states.

The exchange rate of Kazakhstan’s tenge is forecast to remain stable for the rest of 2023.

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