EBRD predicts slower growth of economy of Kazakhstan in 2018-2019

© RIA Novosti / Nikolay to Lazarenkova in fotobounce Astana. Archival photoEBRD predicts slower growth of economy of Kazakhstan in 2018-2019© RIA Novosti / Nikolay to Lazarenkova the image Bank

The European Bank for reconstruction and development (EBRD) expects a slowdown in Kazakhstan’s economic growth in 2018 and 2019, up to 4% and 3.5%, respectively, compared with growth of 4.1% in 2017, says the report of the Bank.

«In Kazakhstan, the growth rate will slow to 4% in 2018 and 3.5% in 2019 from 4.1% in 2017 due to lower revenues from oil production. However, expect a significant increase in the minimum wage to a certain extent, will support private consumption», — stated in the message of the EBRD.

In addition, economic growth in Kazakhstan will be supported by investment in oil and gas sector.

In the whole region of Central Asia, the EBRD forecasts growth will slow from 4.8% in 2017, 4.6% in 2018, reflecting the measures of fiscal consolidation and a sharp decline in gold production in Kyrgyzstan.

In 2019 the economic growth in the region will slow to 4.2% in light of lower revenues from the extractive sector and higher inflation, limiting the increase in real incomes and consumption.