Kazakhstan: GDP growth weakens in Q2
According to a preliminary reading, GDP growth weakened to 3.4% year on year in January-June, down from 4.6% in January–March. The cumulative reading suggests the economy slowed markedly in Q2 compared to Q1.
The downturn seems to have been underpinned by the fallout from the Russia-Ukraine war. Domestic demand should have taken a hit from soaring inflation and higher interest rates, while deteriorating business environment and higher uncertainty boded poorly for investment activity. More positively, higher prices for oil and gas—Kazakhstan’s key exports— should have somewhat softened the slowdown in Central Asia’s largest economy.