ASTANA – In 2024, Kazakhstan’s gross domestic product (GDP) growth is expected to reach 5%, the inflation rate to slow to 7.1%, and an exchange rate in the range of 470 tenge per U.S. dollar, according to the Eurasian Development Bank’s (EDB) macroeconomic outlook for 2024 released on Dec. 14.
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“Investment activity stimulated by government measures to boost the investment appeal of Kazakhstan’s economic sectors remains the key driver of growth. The economic diversification policy may well encourage manufacturing to pick up growth speed. The projected easing of monetary conditions will also foster economic growth,” the report reads.
According to EDB analysts, the base rate might reach 10% at the end of 2024.
“With the easing of inflationary pressures from domestic consumer demand, we might expect a base rate reduction to 7–8% by the end of 2025. In the medium term, monetary policy will keep inflation within the target range of 5%. Deposit rates may start falling in the second half of 2024. Loan costs will be driven by the preferential financing programs introduced by the authorities,” the report notes.
