Country Economic Forecasts - Kazakhstan
President Tokayev’s use of January protests, the worst for ten years, to take over his predecessor’s remaining powers, with a pledge to tackle old-regime oligarchs, may help new Prime Minister Alikhan Smailov (who has a finance ministry background) to speed up structural reforms. But the Russian-assisted clampdown risks inflaming underlying public hostility. Nazarbayev allies might also counter-attack, using the protests to stall the cautious liberalisation of 2019-21. A quick restoration of public order and reaffirmation of reform plans will be needed to sustain the investment recovery and keep FDI on the rising path needed to finance a widening current account deficit in 2023-25 without faster KZT depreciation. Overall, GDP growth in 2022 is still seen at 5.3%.
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