EBRD lowers Kazakhstan’s GDP growth outlook for 2024 to 4.5% over spring floodsThe European Bank for Reconstruction and Development (EBRD) has lowered the 2024 economic growth forecast for Kazakhstan by 0.5% to 4.5%, according to the EBRD’s May report titled Regional Economic Prospects.In its September report, the EBRD expected Kazakhstan’s GDP to grow by 5% in 2024.Downside risks to the outlook relate to severe floods hitting Kazakhstan’s regions in late March-April 2024, according to the report.“While elevated government spending will soften their negative impact on aggregate demand, the floods’ full impact is yet to be felt,” the report says.In 2025, economic growth will likely accelerate on account of higher oil production and potential privatizations and may come to 5.5%, according to the EBRD.In 2023, real GDP added 5.1% on the strength of robust domestic demand, despite a 7% decline in exports. Retail and wholesale trade were the main growth drivers, supported by strong growth in wages and consumer lending.  Government expenditure in 2023 rose by 24.3%, mainly financed by a substantial increase in non-oil revenues. While oil export revenues declined on lower prices, exports to Eurasian Economic Union countries provided a boost for non-oil activities.The economy slowed down slightly in the 1st quarter of 2024, growing by 4.7% year on year, supported by expansion in construction (up 15.9%), communication (9.3%) and transport and warehousing (9.5%), the EBRD said. (ICE ALMATY)

Fonte notizia: INTERFAX