Republic of Kazakhstan : 2015 article IV consultation: press release: staff report for the Republic of Kazakhstan.

Republic of Kazakhstan : 2015 article IV consultation: press release: staff report for the Republic of Kazakhstan.

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Bibliographic Details
Imprint:	Washington, D.C. : International Monetary Fund, ©2015.
Description:	1 online resource (79 pages) : color illustrations.
Language:	English
Series:	IMF country report ; no. 15/241 IMF country report ; no. 15/241.
Subject:	International Monetary Fund -- Kazakhstan. International Monetary Fund. Economic development -- Kazakhstan. Fiscal policy -- Kazakhstan. Monetary policy -- Kazakhstan. Financial crises -- Kazakhstan -- Prevention. Financial risk management -- Kazakhstan. Structural adjustment (Economic policy) -- Kazakhstan. Economic development. Economic history. Financial crises -- Prevention. Financial risk management. Fiscal policy. Monetary policy. Structural adjustment (Economic policy) Kazakhstan -- Economic conditions. Kazakhstan.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12504723

Hidden Bibliographic Details
Varying Form of Title:	Republic of Kazakhstan, 2015 article IV consultation
Other authors / contributors:	International Monetary Fund.
ISBN:	1513575244 9781513575247
ISSN:	1934-7685
Notes:	"September 2015." Includes bibliographical references. Online resource; title from pdf title page (IMF Web site, viewed September 23, 2015).
Summary:	Context: Over the past two decades, Kazakhstan has successfully harnessed its oil resources to bolster economic growth, increase buffers, and reduce poverty. However, in the face of recent large and likely long-lasting external shocks?lower oil prices, Russia slowdown, and corollary exchange rate (ER) movements (ruble depreciation, dollar appreciation)---growth has decelerated rapidly, financial conditions have tightened, and pressures on the balance of payments and exchange rate have built up. The shocks have also increased financial sector vulnerabilities, where nonperforming loans (NPLs), while declining significantly, remain high, and rising balance sheet risks and tight exchange rate management, have put further drag on banks' lending and economic activity. Nevertheless, more recently, and in response to reduced currency pressures and reduced spreads, the authorities successfully tapped the international capital markets and widened the ER band. Focus of consultation and key recommendations: The consultation focused on calibrating the policy response to address Kazakhstan's near-term challenges and long-term goals of becoming a dynamic emerging market economy. Principally, there is need to (i) identify credible medium-term fiscal consolidation measures to ensure sustainability; (ii) introduce greater exchange rate flexibility to help the economy absorb current and future external shocks; (iii) bolster financial sector resilience to limit adverse spillovers back to the real sector; and (iv) implement structural reforms to ensure durable growth and shared prosperity. Previous consultation: During the 2014 Article IV Consultation, Directors stressed the importance of restoring confidence in the post-devaluation environment and further strengthening the policy frameworks to bolster the economy's resilience to shocks. Specifically, Directors (i) urged appropriate supervisory actions to enforce the NPL ceilings effectively, while ensuring adequate provisions; (ii) highlighted the need to speed up the introduction of a new policy interest rate instrument; (iii) stressed the need to enhance fiscal coverage and integration into a consistent macro-fiscal framework; and (iv) noted the priority of strengthening human capital and institutions, and lowering the role of the state in the economy. Since then, the authorities' resolute efforts on lowering NPLs have begun to pay off, and important early steps have been taken to enhance monetary policy operations, ER flexibility, and communication. Progress in bolstering the fiscal policy framework, however, has been slow. The authorities have also embarked on an ambitious structural reform program and recently completed negotiations to join the WTO within 2015.
Standard no.:	10.5089/9781513575247.002

Description
Summary:	This 2015 Article IV Consultation highlights that against the backdrop of external shocks, economic growth and inflation in Kazakhstan have decelerated. Financial conditions have tightened, and external imbalances are emerging. Real GDP growth slowed to an annualized 2 percent during the first quarter of 2015, down from about 4 percent in 2014 and 6 percent in 2013. In addition to weaker external demand, slower growth was driven by the impact of lower income and profitability and confidence effects on private consumption and domestic investment. Real GDP growth is projected to decelerate to 2 percent in 2015, owing to weaker demand from Russia and China, lower oil prices, confidence effects, and continuing delays in the Kashagan oil field.
Item Description:	"September 2015."
Physical Description:	1 online resource (79 pages) : color illustrations.
Bibliography:	Includes bibliographical references.
ISBN:	1513575244 9781513575247
ISSN:	1934-7685