World Bank improves GDP growth forecasts of Kazakhstan for 2018

30 November, 2018, 14:21 452
World Bank improves GDP growth forecasts of Kazakhstan for 2018

They in the international organization underlined that the macroeconomic situation in Kazakhstan is stable and a 4% GDP growth forecast is a good indicator. 

 

The World Bank has increased the forecasted growth in gross domestic growth of Kazakhstan or 2018 from 3.7% to 3.8%. Ato Brown, the World Bank permanent representative in Kazakhstan, told during a meeting with journalists on the margins of a roundtable on increase of the legal culture, Bnews.kz correspondent reports.   

"In general, the macroeconomic situation in Kazakhstan is stable and the forecasted growth in GDP is 4%, which is a good indicator. Taking into account that many countries face difficulties with growth in the global situation. Kazakhstan demonstrates good results, for instance, the country has improved its rankings in Doing Business, climbed in the human capital index. One should understand that the world faces difficult situations considering the sanctions against Russia, the reduction of the economic development of China. It would be more difficult for Kazakhstan, so internal reforms should be strengthened to enter the 30 most developed states of the world," said Ato Brown. 

According to the expert, our country should pay attention to enhance productivity as with its enhancement, income and new possibilities for people will rise. 

"It is necessary to reform the banking sector so it presents more possibilities for small-sized businesses and supported them. The Kazakh government has ambitious programmes so to reduce the participation of the state in the private sector. In order to make the private sector to develop itself under the market conditions, which will support both small- and medium-sized enterprises and large enterprises. I believe that productivity, the banking sector, and export orientation are key," he said. 

Ato Brown spoke of the great participation of the state sector in Kazakhstan's economy as a link that since the independence of our country the institutions should have been strengthened to reach development in the society. 

"Now when all this was more or less achieved, it is very important to make this transition, for the state to leave the private sector, and let it develop after that GDP will increase. As of today, there are such under endeavors in Kazakhstan. We have heard that KazAtomProm entered IPO in London and in Astana. And other companies also plan to enter. The standard of the OECD states is 15% of state participation, in Kazakhstan, this is 50-60%. Only if it is reduced to 15%, then we can observe really good changes," said the speaker.