Kazakh Growth Revised Upwards

Kazakhstan’s economic growth estimate for 2017 has been revised upwards from 2.4% to 3.7%, reflecting a better-than-expected oil sector performance, driven by the launch of production at the Kashagan oil field and higher oil prices, says the World Bank’s fall edition of the Kazakhstan Economic Update, Finchannel reported. The report has a special focus on the private sector in Kazakhstan and highlights challenges that pose a significant barrier to unlocking the sector’s potential. This year, Kazakhstan’s economy started to recover from the crisis caused by the fall in global oil prices, with real GDP growing by 4.3% in the first nine months of 2017, compared to 0.4% in the same period of 2016. “Despite the ongoing economic recovery, growth will remain lower than in the pre-crisis period. Low resilience of Kazakhstan’s economy to external shocks remains the major challenge for achieving stable and sustainable development,” says Ato Brown, World Bank country manager for Kazakhstan. “To accelerate and deliver inclusive growth, Kazakhstan needs new drivers of growth.”