ASTANA, Kazakhstan, September 5. Standard & Poor's (S&P) analysts predict that inflation in Kazakhstan will average 14 percent in 2023, with a slowdown to 5 percent by 2026, which is in line with the target level of the National Bank of the country, Trend reports.
According to S&P, a free-floating exchange rate has helped the economy adapt to external volatility factors.
S&P notes a significant improvement in the quality of assets in the financial sector of Kazakhstan. The impact of geopolitical factors on economic growth and the country's banking sector is assessed as moderate, and financial stability risks are under control.
At the same time, a significant decrease in Kazakh oil exports for a long time, an increase in the budget deficit, an increase in the burden of servicing public debt, and other unfavorable factors may lead to a downgrade of the credit rating.
At the same time, Kazakhstan's sovereign rating could be upgraded if fiscal policy improves, which will slow down the dynamics of debt burden growth and debt service and improve the effectiveness of monetary policy, as evidenced by low inflation.
Standard & Poor's predicts the growth of Kazakhstan's economy at 4 percent in 2023–2026, The agency also affirmed the sovereign credit rating of Kazakhstan at BBB-/A-3 with a stable outlook.
