BAKU, Azerbaijan, April 4. The Asian Development Bank (ADB) expects the inflation in Kazakhstan to subside to 11.8 percent in 2023 from 15 percent recorded in 2022, Trend reports, citing the ADB’s latest Asian Development Outlook (ADO) report.
The Bank anticipates a further decrease to 6.4 percent in 2024. The expected dynamic is attributed to the tight monetary policy, and high policy rates, and presumes domestic currency stability.
The report notes that the government’s export restrictions on food staples and gasoline price controls are expected to maintain price stability, which will trim inflation further.
On the demand side, consumption growth is projected to rebound to 1.6 percent in 2023 and 2.2 percent in 2024 as reduced inflation boosts real incomes and state allocations of social support rise.
Kazakhstan was the first Central Asian country to join ADB in 1994. Since then, ADB has approved more than $6 billion in sovereign and private sector loans, and technical assistance grants supporting transport, agriculture, water, education, health, finance, and public sector management.