Kazakh govt aims to achieve 6% economic growth, reduce inflation to 5% in the medium term

ASTANA. Feb 1 (Interfax) - Kazakhstan intends to achieve economic growth of 6% in the medium term, according to an agreement signed by the government, the National Bank and the Agency for Regulation and Development of the Financial Market on the coordination of macroeconomic policy measures for 2024-2026, the prime minister's press service said.

"The government aims to achieve economic growth rates of up to 6% in the medium term. The National Bank aims to stabilize inflation around 5% in the medium term under the inflation targeting regime," the agreement says.

It is noted that for sustainable economic growth, the government will pursue a balanced fiscal policy and take measures to reduce the dependence of budget expenditures on oil prices.

Steps are being taken to create favorable conditions for business activities and attract investment. Work will continue to ensure the country's food security and reduce the share of food imports, including through the commissioning of new poultry and meat processing plants, dairies, and the establishment of apple orchards.

A National Product Traceability System will be launched to digitally track the movement of socially important food products from agricultural producers to the final consumer.

The government will continue to monitor external trade turnover, terms of trade and risks to minimize the negative impact of external shocks on the economy of Kazakhstan.

The document also provides for developing an innovative and competitive environment, reducing the shadow sector, and protecting consumer rights.

As reported, inflation in Kazakhstan at the end of 2023 amounted to 9.8%, while GDP grew by 5.1%.

The World Bank expects Kazakhstan's GDP growth to be 4.3% in 2024 and 4.5% in 2025.

The International Monetary Fund forecasts Kazakhstan's GDP growth at 3.1% in 2024, and at 5.7% in 2025.