EBRD expecting Kazakhstan’s GDP growth at 7% in 2011

According to the European Bank for Reconstruction and Development (EBRD), real GDP growth will gain momentum to reach 7% once again, the Bank’s press-release issued May 20 reads. Although mid-term outlooks are upbeat, diversification to overcome dependence on oil is a must to secure stable economy growth, the statement said. EBRD notes that Kazakhstan’s Government “has been successful in tackling the banking sector’s crisis. To ensure further growth of the real sector, Kazakhstan’s banks should resume lending to the private sector; to this end, the issue of bad debts should be addressed”. EBRD also draws attention to the issue of inflation. “Although in 2010 the inflation was kept within the planned 6-8%, this April the figure stood at 8.5%, average annual inflation may reach 9.3% in 2011”, the Bank’s experts believe. 2011 EBRD Annual Meeting and Business Forum