Kazakhstan's economy growing above potential, IMF official says
Signs of economic overheating persist not only in Kazakhstan but also in other Central Asian countries and across the Caucasus, Roberto Cardarelli, Assistant Director of the IMF's Middle East and Central Asia Department, said at a presentation of the regional economic outlook, Qazinform News Agency reports.
Asked whether the International Monetary Fund's January assessment of overheating in Kazakhstan's economy still stood, the official said many economies in the region continue to grow above their potential.
Cardarelli explained that potential growth is the rate of growth that does not trigger higher inflation, and that an economy growing above its potential means it is overheating.
As he noted, the situation was similar not only in Kazakhstan but also in Azerbaijan, Uzbekistan, and Kyrgyzstan, as these countries are also seeing high inflation.
He added that Kazakhstan outperforms many of its neighbors on inflation, though demand still exceeds what the economy can sustain.
Roberto Cardarelli also emphasized that the region's countries are taking measures to reduce overheating and bring economic growth back to its potential level.
Earlier, Qazinform reported that Kazakhstan had fulfilled IMF recommendations on banking oversight.