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IMF Warns of Economic Overheating in Kazakhstan, Urges Tighter Policies and Reforms
['Fatima Kemelova']
The Astana Times
ASTANA — The International Monetary Fund (IMF) has cautioned that Kazakhstan’s strong economic growth is showing clear signs of overheating, calling for tighter and better-coordinated macroeconomic policies, continued monetary restraint, and accelerated structural reforms to ensure sustainable growth.
Under this process, the IMF holds annual bilateral discussions with member countries to review economic developments and policies, reported the IMF on Jan. 27.
Strong domestic demand, underpinned by an expansionary public-sector stance, has led to clear signs of economic overheating, pushing inflation well above its target.
The National Bank of Kazakhstan continues to maintain a tight monetary stance amid persistent inflation pressures.
Executive Directors commended the authorities for economic resilience but noted that strong growth has been accompanied by persistently high inflation and a widening current account deficit.