Astana hosts IMF press conference on 2024 Article IV Consultation with Kazakhstan
The International Monetary Fund held a press conference in Astana on the 2024 Article IV consultations with Kazakhstan, Kazinform News Agency correspondent reports.
Economic Outlook
Nicolas Blanchet, Deputy Director of the IMF's Middle East and Central Asia Department and Mission Chief for Kazakhstan noted that Kazakhstan’s economy has been relatively strong, with a projected growth rate of 3.9% for 2024, largely driven by higher public spending. Inflation has also been declining, dropping to 8.4% in August.
This trend is expected to continue, with a further boost in 2025 due to increased oil production. However, the IMF cautions that growth in the medium term will likely stabilize, with non-oil GDP growth hovering around 3.5%.
Financial Sector
IMF Mission Chief for Kazakhstan commended Kazakhstan for its progress in financial sector reforms.
“The last time we were here, we discussed the financial sector assessment program, which was implemented last year by the IMF and the World Bank. It was an extensive, in-depth review of the system, and the conclusions were positive: the system is resilient, and it continues to show resilience today. Additionally, the authorities have implemented a roadmap that was adopted in December last year and is now being rolled out. This has already resulted in improvements, particularly in the quality of financial supervision and in the development of data needed to better identify risk areas. Furthermore, these efforts have contributed to strengthening what we refer to as the macro-prudential mandate of the National Bank,” says Blanchet.
A key area of concern for Kazakhstan is the need to establish a framework for resolving banks in distress, to prevent the use of public funds for costly bailouts. Kazakhstan has experienced several such situations in the past, which heavily burdened the public sector. The IMF emphasized that a coordinated approach is essential to manage any serious banking crises and minimize the use of public money.
