Q1 2011 budget surplus standing at $ 2 billion: Troika Dialogue

Kazakhstan’s cautious budgeting policy is producing positive results. Annual inflation is expected to slow down against the budget surplus, economic growth and stanble exchange rate of the national currency, the tenge, experts with Troika Dialogue Investment Company believe, Bnews.kz reported. According to the Company, the nation’s consolidated budget has seen a substantial surplus. “For the Q1 2011, budget surplus made up $ 2 billion in line with the official calculation scheme employed by the Kazkah Government; according to the IMF, the figure totaled $ 3 billion (…) We expect a budget surplus of 5% of the national GDP”, the Company’s statement reads. The Company’s analysts noted that the interventions of the National [Central] Bank have intensified this year. As a result, gold and currency reserves in the Q1 2011 grew by $ 6.9 billion, whereas for the whole 2010 the figure grew by $ 5.2 billion. “Growing current account surplus against the backdrop of high oil prices and growing exports have ensured inflow of currency. Early March the National Bank announced return to the managed float of the tenge. Volatility at the currency market is on the rise, but the National Bank keeps exchange rate targeteing through interventions and accumulation of gold and currency reserves”, the Company’s statement reads.

Kazakhstan’s cautious budgeting policy is producing positive results. Annual inflation is expected to slow down against the budget surplus, economic growth and stanble exchange rate of the national currency, the tenge, experts with Troika Dialogue Investment Company believe, Bnews.kz reported. According to the Company, the nation’s consolidated budget has seen a substantial surplus. “For the Q1 2011, budget surplus made up $ 2 billion in line with the official calculation scheme employed by the Kazkah Government; according to the IMF, the figure totaled $ 3 billion (…) We expect a budget surplus of 5% of the national GDP”, the Company’s statement reads. The Company’s analysts noted that the interventions of the National [Central] Bank have intensified this year. As a result, gold and currency reserves in the Q1 2011 grew by $ 6.9 billion, whereas for the whole 2010 the figure grew by $ 5.2 billion. “Growing current account surplus against the backdrop of high oil prices and growing exports have ensured inflow of currency. Early March the National Bank announced return to the managed float of the tenge. Volatility at the currency market is on the rise, but the National Bank keeps exchange rate targeteing through interventions and accumulation of gold and currency reserves”, the Company’s statement reads.