Kazakhstan: Improved short-term economic outlook

Kazakhstan possesses substantial crude oil and natural gas reserves. Growth fell sharply to +3.2% in 2008 and +1.2% in 2009 as oil prices plunged and the global credit squeeze pushed the Kazakh banking sector into a systemic crisis.

The banking sector remains vulnerable and the exchange rate will remain vulnerable to external shocks. Public finances are favourable. The current account posted a surplus of 4.6% of GDP in 2012. Gross external debt was relatively high.