IMF mission ascertained that economy of Kazakhstan reached pre-pandemic production levels

Prime Minister Askar Mamin held talks with experts from the International Monetary Fund headed by the Head of the Mission to Kazakhstan, Nicolas Blanchet.

The Head of Government was presented with the IMF's expert assessments and forecasts on the economic situation in Kazakhstan, as well as the policy pursued by the Republic of Kazakhstan to minimize the consequences of the pandemic and support the population and business.

The mission noted the positive dynamics of real GDP growth in the Republic of Kazakhstan following the results of 10 months of this year at the level of 3.5% and the return of production volumes to the pre-pandemic level.

“The authorities' response has played a key role in mitigating the impact of shocks on incomes and economic activity. Policy measures included price controls for socially important goods, cash transfers to vulnerable households, and targeted assistance to particularly affected sectors and small and medium-sized businesses, including concessional lending and tax breaks. Projects under the Employment Roadmap program have helped support employment,” the IMF mission statement said.

According to forecasts of experts from the International Monetary Fund, by the end of 2021, the growth rate of the economy of the Republic of Kazakhstan will reach 3.7% with further preservation of the recovery dynamics.

The IMF mission praised Kazakhstan's measures to strengthen financial supervision, inflation targeting, digitalization of tax and budget administration, as well as commitments to achieve carbon neutrality by 2060.

The Prime Minister noted that in order to ensure high-quality and sustainable development in the context of a new post-pandemic reality, Kazakhstan has switched to a new System of State Planning. As part of its implementation, the Government has developed national projects in the areas of regional development, entrepreneurship, agro-industrial complex, ecology, digitalization, education and science, healthcare and social development. At the same time, new approaches to attracting investment have been developed and a course towards the formation of a green economy has been determined.

The parties discussed issues of monetary, foreign exchange, fiscal policy, the situation in the banking sector, the development of the private sector and the structural reforms of the economy carried out by Kazakhstan.

First Deputy Prime Minister Alikhan Smailov, Chair of the Agency for Strategic Planning and Reforms Kairat Kelimbetov, Minister of Finance Yerulan Zhamaubayev, Minister of National Economy Aset Irgaliev, Deputy Governor of the National Bank Aliya Moldabekova and others took part in the negotiations.

The IMF mission visits Kazakhstan twice a year for holding annual consultations in accordance with Article IV of the IMF Agreement.

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