Real GDP growth of Kazakhstan will be at the level of 5% in 2014-2017 - S & P

Almaty. July 24. Silkroadnews - Real growth in gross domestic product (GDP) of Kazakhstan in 2014-2017 years is expected to reach 5%, said the report of the international rating agency Standard & Poors.
"We expect that real GDP growth in 2014-2017 on average will be equal to 5%, which is below the level projected earlier due to the slowdown in oil production due to delay commissioning of the Kashagan oil field. We expect that economic growth will sustain spending and public sector consumption and net exports", - stated in the information disseminated on Thursday.
According to S & P, Kazakhstan's economy is depending on the production of commodities, due to the relatively small size of the economy and large reserves of natural resources.
High economic growth of Kazakhstan in the last decade was due to increased of oil production and high oil prices, and persistently high levels of foreign direct investment (FDI), directed mainly in the oil and gas sector.
"We lowered the projected GDP per capita in Kazakhstan in 2014 to $12,300 as a result of the devaluation of the tenge in February 2014. GDP per capita in Kazakhstan still has one of the highest rating among comparable countries, but in a global context has only a moderate rate",- noted in the text.
According to S & P, flexible budgetary and external indicators of Kazakhstan remains high thanks to a budget surplus, a balanced scorecard of the current account, as well as prudent fiscal policy.
At the same time the flexibility of monetary policy is limited to the actual binding of tenge rate to the rate of multicurrency basket and the lack of a national market functioning .
As reported, S & P predicts a slowdown in GDP growth to 4.5-5% in Kazakhstan in 2014-2016, but expects that the total assets of the banking system will grow much more rapidly - about 15% in 2014-2015, as of 2011 -2013 years.