S&P affirms Kazakhstan’s pre-pandemic credit rating

International rating agency Standard & Poor's affirmed Kazakhstan's sovereign credit rating at 'BBB-', outlook Stable.

According to the agency's experts, the main factors for the stability of the credit rating were the stable fiscal and external balances of the country's economy, as well as expectations about the economic recovery this year.

S&P notes that in 2020, measures of fiscal support from the Government have become one of the main factors in ensuring the stability of the economy and preventing sharp fluctuations in the level of welfare of the population.

According to the agency's estimates, the economy of Kazakhstan will fully recover from the contraction of 2020 by the end of this year.

This year, according to S&P estimates, against the background of ongoing measures to diversify the economy and increase the share of the private sector, the GDP growth rate will be 3.5%.

In the structure of growth, the main drivers will be a stable positive dynamics in the processing sector, increased investment activity, weakening of restrictions associated with the pandemic, as well as a recovery in foreign trade.

An additional factor for economic growth in 2022 will be the recovery in the oil sector amid easing production restrictions from OPEC+ and the expansion of production at the Tengiz field.

According to the agency's estimates, the growth rate of the national economy in 2021-2024 will amount, on average, to about 3.6%.

Stay updated about the events of the Prime Minister and the Government of Kazakhstan - subscribe to the official Telegram channel