National Bank of Kazakhstan predicts 21.7% decline in exports
In the first half of the year, the country’s current account balances ended with a surplus of $1.7bn due to the reduction of earnings payable to foreign direct investors. However, account deficits of $4.2bn are expected by the end of 2020.
According Yerbolat Dossayev, the Kazakh National Bank Head, the country’s exports will decrease by 21.7% to $45.5bn as a result of falls in oil and metal prices as well as lower oil production as part of the OPEC+ agreement. Despite that, decline in exports is to be partially offset by the reduction of earnings payable to foreign direct investors, operating in the commodity sector.
He went on to say that import of goods is to reduce less compared to exports and to amount $33.8bn.
According to him, the reduction of imports is attributable to a lack of effective demand from the population and businesses due to the COVID-19 virus as well as the slowing pace at which investments projects in the oil sector is being implemented.
Earlier, the National Bank Head said that the country’s GDP was to fall to 2-2.3% by yearend.