Kazakhstan: Growth picks up in 2019
An official release revealed that economic activity accelerated last year. GDP growth sped up to 4.5% in 2019, up from 4.1% in 2018, according to the Statistical Institute. Although a comprehensive release is not yet available, sturdy domestic activity seems to have buoyed the overall expansion. Household spending likely benefited from higher wages, while capital investment growth likely accelerated thanks to government efforts to improve the business climate and incentives for non-oil investment.
Growth is expected to moderate this year but should remain solid nonetheless. Robust output has strengthened the government’s hand to push ahead with its privatization agenda, which should foster solid fixed investment growth ahead. Exports are expected to gain some steam, although protracted weakness in Chinese demand due to the coronavirus outbreak pose a downside risk to the outlook.