29 Jun 2023 13:48

Kazakhstan's economy expected to grow 4.5-5% in 2023

ASTANA. June 29 (Interfax) - The government of Kazakhstan if forecasting economic growth in the country to reach 4.5-5% in 2023, Prime Minister Alikhan Smailov said.

"Over the first five months, real GDP growth reached 4.5%. The upward curve is visible in all major areas. (...) This year we expect the economic growth at 4.5-5%, while in the medium term, it could rise to at least 6 %," Smailov said at the forum of Maslikhats members of the Amanat party in Astana.

The government's forecast for this year is generally in line with the estimates of the National Bank of Kazakhstan, which actually expects economic growth within a wider range from 4.2-5.2%. Kazakhstan's state budget for 2023 includes GDP growth of 4-4.1%.

According to Smailov, Kazakhstan's economy has adapted to unfavorable external economic conditions and is demonstrating positive trends. Meanwhile, the government and local authorities see the achievement of food price stability as a top priority. With this in mind, Kazakhstan is implementing measures to reduce inflation such as allowing for forward contracts with agricultural producers, the active stabilization of food funds, the construction of vegetable stores, antimonopoly and foreign trade regulation, and so on.

"As a result, in May, annual inflation slowed to 15.9%. Meanwhile, we are planning to cut it in half by the end of the year," the Prime Minister said.

The Eurasian Development Bank expects that Kazakhstan's economy will grow 4.3% in 2023, whereas the European Bank for Reconstruction and Development projects growth of 3.9%, and the World Bank, 3.5%.