In the first half of 2024, Kazakhstan experienced a decline in tax revenue collection, primarily due to lower oil duty and value added tax receipts compared to 2023
The Asian Development Bank (ADB) projects Kazakhstan’s gross domestic product (GDP) to grow by 3.6% this year, a slight decrease from the earlier forecast of 3.8% made in April 2024, and accelerate to 5.1% in 2025, Kazinform News Agency correspondent reports, citing ADB.
The ADB has revised its economic growth outlook for Kazakhstan in 2024, following weaker expansion in services in the first half of the year coupled with lower oil outputs, massive floods, and a slowdown in investment.
In the first half of 2024, Kazakhstan experienced a decline in tax revenue collection, primarily due to lower oil duty and value added tax receipts compared to 2023. However, this shortfall was compensated by increased transfers from the National Fund of the Republic of Kazakhstan, with the government utilizing three-quarters of the planned annual transfers. The conversion of these foreign currency receipts to tenge by the central bank contributed to an appreciation of the national currency.
"While the economic growth prospects for Kazakhstan’s look positive in the medium term, its fiscal challenges need to be addressed to ensure sustainable and inclusive economic growth,” says ADB Country Director for Kazakhstan Utsav KUMAR.
Inflation in Kazakhstan slowed to an average of 8.9% in the first seven months of 2024, down from 17.2% in the previous year. It is expected to decrease further to 6.1% by 2025, supported by tight monetary policy and a stable exchange rate, bolstered by substantial foreign reserves and commodity export earnings.
Photo credit: Midjourney.
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