BAKU, Azerbaijan, Sept. 4
Trend:
The S&P international rating agency has confirmed the sovereign credit rating of Kazakhstan at the level of "BBB-", the forecast is "Stable", Trend reports on September 3 with reference to the National Bank of Kazakhstan (NBK).
According to S&P analysts, the key factors supporting Kazakhstan's rating are robust fiscal and external reserves.
“The floating exchange rate regime helped the economy adapt to external pressures from the 2020 oil shock. Gradual fiscal consolidation, implementation of a fiscal rule limiting the number of transfers from the National Fund to the budget, and an increase in oil production will help strengthen Kazakhstan's external position,” S&P analysts noted.
According to S&P, in 2021, inflation will be 8.5 percent, which reflects the ongoing stimulating fiscal policy, higher prices for imported goods, as well as the early withdrawal of pension savings by citizens.
The agency notes that increased transparency on the part of the National Bank, especially the publication of foreign exchange transactions of the Kazakh National Fund, the joint work of the National Bank with the Ministry of Finance to build a yield curve, and the separation of financial regulation functions from the powers of the National Bank increase confidence in the monetary policy being pursued.
According to S&P analysts, the implementation of the National Bank's plans to exit the programs to support the economy until 2025 will help increase its efficiency.
According to S&P forecasts, the growth rate of the Kazakh economy will amount to 3.5 percent in 2021 and will be supported by the growth of the non-oil sector, the recovery of economic activity due to the easing of restrictions, the growth of investments, and the recovery of business activity in the countries - the main trading partners.
