Kazakhstan Economic Update No. 1, Spring 2015 : Low Oil Prices--An Opportunity to Reform
Kazakhstan’s gross domestic product (GDP) growth slowed in 2014 because of weak demand and the fall in oil prices. Government policies were directed to mitigating the impact of lower oil prices on growth. So far labor market and poverty reduction o...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/05/24439136/kazakhstan-low-oil-prices-opportunity-reform http://hdl.handle.net/10986/21895 |
| Summary: | Kazakhstan’s gross domestic product
(GDP) growth slowed in 2014 because of weak demand and the
fall in oil prices. Government policies were directed to
mitigating the impact of lower oil prices on growth. So far
labor market and poverty reduction outcomes do not seem to
have been affected by the downturn, thanks to continued job
creation, inter-sectoral and geographic mobility, and new
employer social arrangements. The same factors that slowed
growth in 2014 are also clouding the outlook for the medium
term. Trade and transport services will be affected by a
knock-on effect from lower mining and industrial exports.
However, GDP growth is projected to recover gradually along
with oil prices. Continuing the current policy mix of modest
fiscal expansion and tight monetary policy will not boost
the economy; for the medium term a more neutral monetary
policy stance and a more flexible exchange rate regime will
more sustainably support growth. |
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