World

Crisis in Kazakhstan

Кризис в Казахстане

Fall of oil prices, the declining Russian economy and the slowdown of China’s economy – trade partners of Kazakhstan, deteriorated economy of the country. The World bank expects growth of Kazakhstan economy at 0.9% resulting 2015 (in 2014 it was 4.4%), and forecasts GDP growth at 1.1% in 2016 and 3.3% in 2017.

The economy of the Republic of Kazakhstan in January-October of 2015 is in the process of slowing (rate 100.5% to 2014, GDP growth +1% by production and +1.3% by CPI). 67%-68% of the country’s GDP forms production (agriculture, industry, construction, trade, transport and communication). In the period under review, the drop mostly occurred cargo turnover (92.6% against 2014).

The government has taken a number of measures to remedy the situation. First of all, it adjusted the costs. An important step was a tightening of monetary policy. First of all, the decision of August 2015 to switch floating exchange rates and inflation targeting.

The national currency – tenge – at the end of October 2015 lost 1/3 of its value. On 04 December 2015, a rate of $1 307.93 tenge.

Kazakhstan was left by foreign banks: RBS, HSBC, Hapoalim. Only a few foreign banks are still there, like Citi and several other banks, including Russian. TOP-5 of Kazakh banks in July 2015: Kazkommertsbank, People’s Bank of Kazakhstan, Tsesnabank, Sberbank Of Russia and Bank CenterCredit.