EBRD Experts Forecast 14.2% Inflation In 2016 In Kazakhstan

Kegoc Early Repays European Bank For Reconstruction And Development (EBRD) Loan

Inflation will make 14.2% in Kazakhstan in 2016, said Nino Shanshiashvili, economic expert of the European Bank of Reconstruction and Development.

“The inflation level will make 14.2% in 2016. In 2017 we hope it will get back to the prognosis of the National Bank – 6-8%. It is important for the Government to continue the reforms to improve productivity and business environment in the state,” she said.

In her words, “the economic growth drivers are the state investments”. “We expect the oil prices to increase and to see serious investments from China in the road infrastructure,” she said.

In her words, “production rehabilitation at Kashagan will make impact on productivity”. “If production grows up to 300 000 barrels a day it will provide GDP growth to 5%,” she said.

Kazakhstan is the second among the creditors of the European Bank of Reconstruction and Development (EBRD) on the volume of allocated funds, said Janet Heckman, EBRD director in Kazakhstan.

“This year has been the third record year for the EBRD on the investments volume in Kazakhstan. Kazakhstan has become the second biggest state on the operations volume for EBRD. Only Turkey is ahead of Kazakhstan on the EBRD funded operations. As of today (since January 2016-KazTAG) EBRD has signed more than 30 projects valued 315 mln euro,” she said.

She added by the end of the year the total volume of crediting of Kazakhstani projects may grow up to 850-900 mln euro. In her words, the bank is crediting projects in all the economy sectors: agriculture, infrastructure, communal services, financial sector, small and medium enterprises. 60% of EBRD crediting falls on the private sector.

She said EBRD provided 300 mln euro to KazTransGas for gas provision in the regions.

In 2017 the EBRD investments in Kazakhstan will increase by 800 mln to 1 bn euro, she added. The bank is focused on the development of financial sector, SME, women’s entrepreneurship and energy efficiency.