Kazakhstan’s investment climate after January events
Kazakhstan is a promising country for investors, but they can prefer a “wait-and-see” approach for a while, experts of the Kazakhstan’s Eurasian Development Bank believe. Analysts of the financial organization observe an increase in country risk premiums, but it is moderate. The net inflow of foreign direct investment in Kazakhstan’s economy exceeded US$3 billion last year. The country’s share in the EDB’s total portfolio is over 36 percent, or approximately US$4 billion. 88 major projects in various sectors were implemented in Kazakhstan with the international financial organization. It is planned to increase investments in Kazakhstan further.
“From the point of view of promising investment in Kazakhstan, the EDB still sticking to its plans. They were not subject to adjustments. We certainly look forward to the program that will be considered at an extended meeting of the Government in early February, as the Head of State announced. The program may suggest some adjustments, but exactly in the same paradigm that the Government and our shareholder are moving in. We have not reviewed the pool of projects, and if we do, it will only be in the direction of building up,” said Amangeldy Issenov, Deputy Chairperson of the Eurasian Development Bank.
Besides, according to experts, during the compensation for damage to business and stabilization of the situation, Kazakhstan’s economy will return to growth after three months of 2022. Analysts forecast a slowdown in inflation in the country. By December, the figure may drop to the upper threshold of the National Bank’s target corridor: 4-6 percent. This will be facilitated by last year’s increase in the interest rate and the measures taken by the Kazakh Government.
Translation and editing by Saniya Sakenova