BAKU, Azerbaijan, May 27. Fitch, a global credit rating agency, expects Kazakhstan's economic expansion to accelerate further, with projected growth rates of 4.5 percent in 2023 and 4.8 percent in 2024, Trend reports.
This positive outlook is largely attributed to the commencement of operations at the expanded Tengiz oilfield, which is anticipated to boost oil export volumes by over a third. Authorities in Kazakhstan estimate the medium-term growth potential to be around 4 percent, highlighting the country's favorable economic prospects.
One key strength supporting Kazakhstan's sovereign credit is its low public debt levels, amounting to 25 percent of GDP as of end-2022, which is significantly lower than the current 'BBB' median. Additionally, the country benefits from large asset buffers, including the National Fund for the Republic of Kazakhstan (NFRK), which consists mainly of foreign currency-denominated assets, and local currency deposits, equivalent to a cumulative 34 percent of GDP.
Although the consolidated budget deficit improved to 0.8 percent of GDP in 2022 due to strong revenue performance, Fitch predicts a slight widening of the deficit to 1.7 percent of GDP in 2023. This increase is attributed to higher expenditures resulting from commitments made toward healthcare and education spending.
