The World Bank believes that Kazakhstan’s economy may rise 3.5% and 3.7% in 2021 and 2022 respectively, Interfax-Kazakhstan news agency reported.
According to the World Bank ECA Economic Update Fall 2021 report, the economic activity in Kazakhstan is projected to recover to its pre-pandemic level by the end of 2021, with the growth of 3.2-3.7% in 2021 and 3.7% in 2022. In 2023 this rate may reach 4.8% as the World Bank has reported.
«The economy is projected to recover further as restrictions ease and aggregate demand improves. The recovery pace remains vulnerable to the pandemic and external demand for hydrocarbons,» the report says.
In June the World Bank’s outlook for Kazakhstani GDP growth this year was 3.2%.
However, the authors of the report noted that with only a third of the population fully vaccinated by the end of August, the vaccine rollout remains a prime concern for the country.
The poverty rate in Kazakhstan is expected to fall to 13% in 2021 even though increasing prices and elevated levels of absence from work could delay the reduction in poverty, the report stated.
The World Bank estimates that the inflation rate in Kazakhstan will remain above the target range of 4-6% at the level of 8% in 2021 due to a surge in global food prices and pent-up demand.
In June European Bank for Reconstruction and Development also projected growth of the Kazakhstani economy in 2021 at a 3.6% rate and 3.8% in 2022. Among the main factors that can contribute to that growth are increasing oil prices, fiscal policy and consumption rebounding, according to the bank’s analysts.