On 22 June 2022, the European Bank for Reconstruction and Development (EBRD) shared a country strategy development based on Kazakhstan for 2022-2027. According to the summary of EBRD about Kazakhstan for 2017-2022, in economic context Kazakhstan’s productivity slowed down in the past five years highlighting the necessity of new growth drivers. The most impact came out of the coronavirus crisis and subsequent collapse of market prices led to a recession in 2020. Also, In 2020 the fiscal discipline has weakened significantly in order to cope with the recession in the economy of the country. The experts of the EBRD expect the slight growth of the economy of Kazakhstan in 2022.
"Kazakhstan’s growth prospects are undermined by the Russia’s war on Ukraine and its consequences. While the country may benefit from elevated commodity prices, it will need to seek replacement suppliers and secure alternative transportation routes. The extra costs of more complicated trade logistics will likely be passed onto Kazakh consumers and producers, adding to inflationary pressures and detracting from the country’s international competitiveness" - “Kazakhstan Country Strategy, 2022-2027”, European Bank for Reconstruction and Development.
The strategy path of EBRD for Kazakhstan 2022-2027 is divided into three main priorities
- Fostering Private Sector Competitiveness, Connectivity and Strengthening Economic Governance
- Support Kazakhstan’s Green Pathway to Carbon Neutrality and Climate Resilience
- Promote Economic Inclusion and Gender Equality through Private Sector Engagement
There are lots of activities planned to be done which will result in the achievement of these main priorities.
Moreover, On 30 December of 2022, the headquarters of Eurasian Development Bank (EDB) approved the redistribution of the authorized capital from the Russian Federation sector in benefit of other Eurasian countries. Most of the authorized capital will be distributed into Kazakhstan's economy. As a result, the share of Russia will be decreased from 65,98% to 44,79%, while the authorized capital shares of EDB will consist of: Republic of Kazakhstan - 37,29%, Republic of Armenia - 4,23%, Republic of Kyrgyzstan - 4,23%, Republic of Belarus - 5,21%, Republic of Tajikistan - 4,26%. The EDB is the international financial organization which does the investments in the Eurasian countries. The changes in the benefit of Kazakhstan means the future increase in development of Infrastructure, Digitalization, Green energy, Agriculture and other sectors of the economy.
Sources: ebrd.com eabr.org