World Bank downgrades Kazakhstan GDP forecast

Astana Business CentreKazakhstan GDP forecast: World Bank has downgraded its growth forecast for Kazakhstan from 1.8% to 1. 3% for 2015 and predicts that GDP in 2016 and 2017 will now increase by 2.8% and 3.9% instead of the 3.2% and 4.7% it stated in its January report.
 “The economic prospects are subject to downside risks,” the bank explains in its June update. “Changes in oil prices and the economic situation in China and Russia – two very important trading partners and sources of FDI inflows – will have a direct impact on Kazakhstan. “[The Bank] expects fiscal policy to normalise in 2016-2017, and general government debt to remain stable, as the National Fund has sufficient reserves to cover it. It may be necessary to adjust monetary policy in response to external pressure.”

Source: Kapital