World Bank calls on Kazakhstan to move towards decarbonized future

In its semi-annual report, The Kazakhstan Economic Update (KEU), titled Shaping Tomorrow: Reforms for Lasting Prosperity the World Bank offers its analysis of recent economic developments, prospects and policy issues in Kazakhstan, Kazinform News Agency reports.

In its report the World Bank projects that Kazakhstan’s economy will grow steadily in next couple of years, driven partially by the country’s reliance on hydrocarbons as well as by stronger consumer spending.

The country’s real GDP, according to the World Bank, is expected to rise by 4.5-5% in 2025 thanks to expansion of production capacity at existing oilfields leading to higher exports and growth of petrochemical sector next year.

Inflation is expected to dip, however, remaining above the central bank’s target in both 2024 and 2025.

The World Bank suggests Kazakhstan introducing policy reforms to raise productivity and market contestability, boosting human capital, facilitating regional development, reducing its carbon footprint and moving towards decarbonized future.

The country, according to the report, can raise productivity and market contestability through promoting pro-competition reforms, revising its business support programs, making procurement procedures more transparent, fair and competitive.

The World Bank also calls on the country to improve the quality of education and invest more in education and ensure high-quality schools countrywide.

The report reminds that Kazakhstan remains one of the major contributors to global emissions globally in per capita terms urging the country to map out a transition away from coal and outline a renewable energy strategy to reduce reliance on fossil fuels.