Kazakhstan overview

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Cityscape in Kazakhstan

In Kazakhstan we have the following priorities:

Balancing the roles of the public and private sectors. The Bank will continue to support the growth of private enterprises, which are still outweighed by the public sector. By investing in the private sector, including small and medium-sized enterprises (SMEs), in agribusiness and the non-extractive sectors, the EBRD hopes to improve the economy’s competitiveness. The Bank remains interested in the privatisation programme announced by the government. At the same time, the Bank will continue to support the reform of Kazakhstan’s public sector and the commercialisation of state-owned enterprises.

Broadening access to finance, strengthening the banking sector and developing local capital markets. Many firms continue to suffer from insufficient access to finance. The EBRD will work on improving the resilience of Kazakhstan’s financial sector, which will in turn help relieve pressures on businesses, especially SMEs and the non-extractive sector. 

Inter-regional connectivity and international integration. Investing in Kazakhstan’s infrastructure remains an important focus of the EBRD. By supporting inter-regional and cross-border rail and road projects, the Bank seeks to enhance connectivity and boost the economic inclusion of remote regions of the country. 

Green economy transition. The EBRD is the largest investor in sustainable energy in Kazakhstan, covering both renewable energy and energy-efficient technologies. It will continue to combine investment with policy engagement, in order to further help the country develop a supportive regulatory framework for sustainable energy, water and resource use. Decreasing Kazakhstan’s carbon footprint is crucial for the country’s sustainable development across all sectors, notably in agriculture, energy and industry.

As well as being a country where the EBRD works, Kazakhstan is also an EBRD donor. To date, the Kazakh government contributed €73 million supporting the EBRD’s Women in Business Programme, Business Advisory Services and policy dialogue objectives in Kazakhstan with a primary focus on transport, telecommunications and energy efficiency.

The EBRD’s latest Kazakhstan strategy was adopted on 5 July 2017

Kazakhstan's policy response to the coronavirus crisis

The EBRD is monitoring Kazakhstan's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.

Learn more

EBRD forecast for Kazakhstan’s Real GDP Growth in 2021 3.6%

EBRD forecast for Kazakhstan’s Real GDP Growth in 2022 3.8%

Real GDP grew by 0.7 per cent year-on-year in January-April 2021 compared to 0.2 per cent contraction in the same period of 2020, signifying the beginning of a gradual recovery. Construction was a major driver (up 12.5 per cent year-on-year) benefitting from the inflow of pension savings – a stimulus measure introduced by the Kazakh government in January 2021. Manufacturing, agriculture and trade contributed to the economic expansion.
The slump in transportation continues: after losing 17 per cent in 2020, the sector is down 9 per cent (year-on-year) in the first four months of 2021. The recovery is constrained by domestic restrictions to contain the spread of Covid-19 and reduction in mining output, to comply with OPEC+ agreements. Fixed investment declined 6.6 per cent year-on-year in January-April 2021, dragged down by contraction of investment into mining, while investment in other sectors surged.
Exports shrank by 17 per cent year-on-year in the first quarter of 2021 due to a substantial reduction of oil and gas exports. The exchange rate bottomed out in early April, after a short bout of depreciation triggered by new sanctions imposed on Russia in March 2021. It is currently stable, supported by elevated commodity prices.
While real estate prices surged, consumer price inflation (7.2 per cent year-on-year in May 2021) remains only slightly above the central bank target thanks to exchange rate stability and subdued demand. The policy rate has been kept at 9.0 per cent since July 2020.
Fiscal policy will remain accommodative in 2021, with authorities targeting a budget deficit of 3.5 per cent of GDP. Real GDP is expected to grow by 3.6 per cent in 2021 and 3.8 per cent in 2022, supported by higher oil prices, fiscal stimulus and recovery of private consumption.
Significant downside risks remain, including those related to the path of Covid-19 infections.

Kazakhstan in the EBRD’s 2020-21 Transition Report


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