Kazakhstan reports inflation slowdown as tenge strengthens
This digest was compiled by AI from multiple sources — links to the originals are below.
Kazakhstan's annual inflation rate is projected to slow to 10.5% in April, according to the National Bureau of Economic Research. This deceleration is attributed to the strong tenge reducing imported inflation. However, internal price pressures persist despite the headline figure improvement.
Inflation Figures
The National Bureau of Economic Research forecasts that annual inflation in Kazakhstan will slow to 10.5% in April, with a monthly rate of 0.6%. The slowdown is primarily due to the strong tenge, which reduces the impact of imported inflation. Despite this, the monthly inflation rate remains above the neutral level, indicating ongoing internal pressures.
Sectoral Impact
Service sector inflation is losing momentum, while food and non-food items converge around 11.3%. The strong tenge helps mitigate cost pass-through into prices, but the internal dynamics show resilience. The market focuses on annual figures, while businesses are more influenced by monthly trends, affecting pricing behavior.
Kazakhstan GDP Growth
Kazakhstan's GDP growth for the first five months of the year is estimated at 4.5 percent, according to recent data. This increase in economic activity highlights a positive trend in the country's business indicators, aligning with global economic improvements.
Kazakhstan GDP Growth Forecast
The Eurasian Development Bank has upgraded its forecast for Kazakhstan's GDP growth to 4.4 percent for both 2024 and 2025. This growth is expected to be driven by state initiatives aimed at diversifying the economy, planned investments, and the expansion of production capacity.
Market Survey Results
The National Bank of Kazakhstan revised its macroeconomic forecasts based on a market participant survey. The survey indicated improved expectations for the dollar exchange rate and inflation, with the tenge strengthening and inflation slowing.
ADB 2026 Growth Forecast
The Asian Development Bank projects Kazakhstan's economy will grow by 4.8% in 2026, according to its spring outlook. This contrasts with an earlier September forecast of a slowdown to 4.3%.
What's Next
The inflation rate could slow to 9.8% by the end of the year. It remains unclear if the food sector risks will be fully addressed.
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Kazakhstan reports inflation slowdown as tenge strengthens
