National Bank gives Kazakhstani economic growth and inflation forecasts

Prices rose 9.5% year-on-year in Kazakhstan in January this year, chairman of the National Bank Timur Suleimenov said, Kazinform News Agency correspondent reports.

Annual inflation for food products stood at 8.2% this January, and fir non-food products was down to 8.6%. Prices for paid services declined slightly, but yet remains high, said Suleimenov during a press conference in Astana.

According to the National bank chief, the monthly inflation rate was 0.8% and is still high than the historic average of 0.6%.

The inflation rate projected for the year dropped to 14.4% in January. The figure stood at 16.4% last December. In the short-term, it is necessary to slow down inflation expectations and their return to the average levels, said the National Bank chairman.

Suleimenov went on to add that price growth is estimated at 7.5-9.5% this year, at 5.5-7.5% next year, and 5-6% in 2026.

The forecast for the economic growth of Kazakhstan was increased to 3.5-4.5% for 2024, and 5.5-6.5% for 2025. The GDP growth is to be driven by greater domestic consumption due to betterment in the business activity in 2024. In 2025, the growth will be attributable to the government measures and planned rise in oil production by Tengizchevroil. In 2026, due to falling oil prices and the current forecast prerequisites, the GDP growth is predicted at 3.5-45%, said Suleimenov.

Earlier it was reported that the National Bank of Kazakhstan reduced the base rate to 14.75%.