NBK predicts GDP growth at about 3 percent in 2017

ASTANA. KAZINFORM GDP growth rate is projected to trend around 3.00 percent in 2017, Kazinform reports with reference to the press service of the National Bank of Kazakhstan.

Currently, the situation on foreign markets remains favorable with oil prices at above $50 per barrel. I would also note the positive growth and sustainable development of our trading partners', Russia and China economies as a positive factor," said the Chairman of the National Bank of Kazakhstan, Daniyar Akishev.

According to him, the country's economy shows signs of growth after three years of slowdown. In January-June in real terms, GDP went up 4.2 percent. And the National Bank forecasts its growth rate at about 3 percent.

"Inflation continues to slow down, 3.9 percent over the eight months of this year, compared with 5.4 percent in the same period last year. Annual inflation in August fell to 7 percent (8.5 percent in December 2016) and is in the middle of the target corridor of 6-8 percent for 2017. In 2018, we expect that inflation will be within the target corridor of 5-7 percent," Daniyar Akishev said.

He also noted that the price growth expectations remain stable enough and the quantitative estimation of inflation expectations for a year ahead was 6.5 percent according to the latest polls.

"Therefore, from the beginning of the year, the National Bank continues to mitigate monetary and credit conditions, consistently lowering the base rate. On August 21, it was reduced by 0.25 percent to 10.25 percent," he said.