Kazakh economy to grow by 1.1% as Kashagan oil field comes on stream

Kashagan oil field Kazakhstan

Kashagan oil field Kazakhstan

With the giant Kashagan oil field set to come on stream this year, the World Bank is predicting that the Kazakh economy will grow by 1.1% in 2016, according to the latest forecasts from the World Bank. Discovered in 2000 in the northern part of the Caspian Sea close to Atyrau, the Kashagan field is one of the world’s largest discoveries in the past 30 years, with estimated recoverable reserves of about 13 billion barrels.
As well as reaping the benefits of revenues from a major new hydrocarbon source, the bank expects the country’s economic performance to be shored up by a stabilisation of world oil prices and an economic recovery in Russia. “[Kazakhstan’s] growth rate will remain at a much lower level than in the first decade of the century, while [the effect of] weak domestic demand seems to be limiting the growth of industry and services,” it suggests in its December report.
In the longer term, it is projecting that Kazakhstan’s GDP will grow by 3.3% and 3.4% in 2017 and 2018 respectively. The World Bank also believes that economic growth in the developing countries of eastern Europe and Central Asia slowed down from 2.3% in 2014 to 2.1% in 2015 last year due to the negative impact of the sharp drop in oil prices eastern part of the region, the conflict in Ukraine, and the knock-on effects of Russia’s recession in the Russian Federation. It expects that to rise to 3% in 2016.

Source: Kapital