Kazakhstan's economic prospects brighten

Significance

Kazakhstan's economy is coming out of a period of subdued growth. An improved external environment, increased oil production and the delayed impacts of past fiscal spending are providing impetus for expansion.

Impacts

• The troubled banking sector will require additional state support, absorbing significant public resources.
• Fiscal consolidation plans will increase scrutiny of the efficiency of spending.
• The timeline for reducing the state footprint in the economy is uncertain.