S&P: Kazakhstan’s GDP will increase by 3% in 2018

Kazakhstan’s GDP will increase by 3% in 2018, Standard & Poor's predicts.

According to analysts, Kazakhstan’s economy will be boosted by the implementation of government programs on infrastructure development and increase in oil production in Kashagan. According to Kazakhstan’s Energy Ministry, it is expected that Kashagan will produce 8 million tonnes of oil in 2017. Kashagan has produced about 6 million 800 tonnes of oil and about 4 billion cubic meters of gas since its launch. The associated sulfur dioxide gas has been recently pumped back into the reservoir to increase the oil recovery factor in Kashagan. This will increase the oil extraction volumes from the current 200,000 barrels per day to 370,000 by the end of the year. International analysts note an increase in the effectiveness of Kazakhstan's monetary policy in connection with a decrease in the level of dollarization. In addition, the Standard & Poor's expects that the new Tax Code will increase budget revenues by about 3% of GDP. This shows the greater fiscal flexibility of Kazakhstan compared to other countries, analysts highlight.