World Bank improved its estimates for economic dynamics of Kazakhstan in 2020

In the updated Global Economic Prospects report dated Jan. 5, 2021, the World Bank has revised upward its estimates of the dynamics of the world economy in 2020.

According to updated estimates, the size of the world economy in 2020 contracted by 4.3%. Earlier, the Bank's June 2020 report expected the global economy to contract in 2020 at the level of -5.2%.

The main factor in improving the assessment of the dynamics of the world economy in 2020 was a lesser recession in some developed and developing countries and a more active recovery in the PRC. Kazakhstan is one of the countries for which the World Bank raised its 2020 growth estimate.

According to the updated World Bank report, the results of 2020 showed that the national economy grew by -2.5%, against -3% predicted in the report of June 2020.

The main factor for improving the assessment of national economic growth was the effective measures of the government to ensure the sustainability of the real sector economy and maintaining the well-being of citizens.

The World Bank notes the effectiveness of the government's measures to deploy the necessary assistance to businesses, including through subsidized financing and tax breaks, providing direct transfers to affected populations, and increasing the availability of medical infrastructure.

For comparison, estimates of economic growth in 2020 were lowered for such countries as Hungary (from -5% to -5.9%), Argentina (from -7.3% to -10.6%), Mexico (from -7.5% to -9%), Ukraine (from -3.5% to -5.5%), Kyrgyzstan (from -4% to -8%), Georgia (from -4.8% to -6% ), Azerbaijan (from -2.6% to -5%), Armenia (from -2.8% to -8%), Indonesia (from 0% to -2.2%), Thailand (from -5% to -6.5%).

In addition, in an updated Global Economic Prospects report, the World Bank has revised downward its forecast for global economic growth in 2021 to 4%, up from the 4.2% estimate in the June 2020 report.

Growth of 4% in 2021 is expected on the condition that the initial use of vaccines for COVID-19 continues on a large scale throughout the coming period.

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