Kazakhstan's business activity growth slows in January 2025In January 2025, Kazakhstan's business activity growth slowed, with the Business Activity Index (BAI) falling to 50.2, down from 50.7 in December 2024, according to the National Bank of Kazakhstan."Although the index stayed in positive territory for the 12th consecutive month, declines were observed in manufacturing and services, which both fell into negative zones, recording 49.9 and 49.7 (down from 50.4 and 50.2 in December), respectively. Trade (51.6) and construction (51.2) showed positive performance, although both sectors saw slower growth compared to December. The extractive industries experienced slight growth, rising from 48.3 to 49.9, but still remained in negative territory," the report said.The Business Climate Index (BCI) improved to 12.8, reflecting more favorable assessments of both current and future business conditions. Overall demand for products and services increased, with construction showing the strongest demand.Respondents expressed concerns about rising tax burdens and limited access to finance, particularly as the government contemplates increasing the VAT rate from 12% to between 16% and 20%."Respondents positively acknowledged infrastructure improvements, while other factors—such as business protection, the tax burden, and access to finance/credit—were assessed negatively. Notably, the perception of the tax burden deteriorated significantly," the Bank reported.As previously mentioned, Kazakhstan is considering raising the value-added tax (VAT) rate from 12% to 20%. According to Deputy Prime Minister Serik ZhumanGarov, discussions are currently focused on setting the rate between 16% and 20%.The National Bank maintained its base rate at 15.25% in January, signaling a cautious approach to monetary policy amid mixed economic conditions. (ICE ALMATY)

Fonte notizia: INTERFAX