Kazakhstan: Strong growth continues, but problems in the banking sector remain
(by Olga Pindyuk)
in: New Divide(s) in Europe?, wiiw Current Analyses and Forecasts No. 9, March 2012, pp. 110-113
Kazakhstan’s economy exhibited outstanding real growth of 7.5% in 2011. We forecast that strong GDP growth of 5-6% in real terms will continue in 2012-2014. The oil sector will remain the backbone of the economy, accounting for the bulk of its exports and FDI. Investment growth is forecasted to speed up in 2012-2014 to about 8-10%, in particular owing to a number of state-financed investment projects. Banking sector vulnerabilities have been accumulating, with the share of non-performing bank loans reaching 21.7% and the BTA bank negotiating a second restructuring.