Economist forecasts Kazakhstan economy’s development path in post-coronavirus world
An economist Azamatkhan Amirtai envisioned the possible scenarios of the development of the economy of Kazakhstan after the COVID-19 pandemic. He said that the country will lose a certain part of its revenues due to the major drop in oil prices.
“Further oil exports while oil prices are extremely low may be not practical. Therefore, a number of projects may be temporarily suspended. The production of gold, precious metals and uranium will continue,” Amirtai said.
Which sector of the economy should be prioritized in the new post-coronavirus world? Amirtai is certain that small and medium-sized enterprises should come forward and take the lead. The current times full of uncertainty bring real challenges to the businesspeople. This means that now they must come up with new extra-ordinary ideas and demonstrate their skills of rapid response and abilities to make something of their own production, rather than being engaged in resale.
“I think that today’s crisis creates a good opportunity for the development of SMEs, including the agricultural sector. The reinforcement of the control at the borders will push the countries to launch the domestic production of many goods. Kazakhstan can produce anything at a local level, including clothes and food. Definitely, this global coronavirus crisis will create momentum for the development of small and medium-sized enterprises,” Amirtai noted.
In addition, Amirtai said that the new market conditions create a good opportunity for the tourism business. He thinks that the domestic tourism can become the flagship of the whole industry. There are a lot of resort areas and beautiful places in Kazakhstan that need to be developed and modernized. Moreover, this direction of the economy usually brings a multiplier effect. Both the construction workers and those working in the services sector will be able to earn good money. For example, Kazakh citizens who like to travel can do so in their homeland. Lakes Balqash and Alakol are great to spend the holidays there.
“People will start making money on this. All the necessary work is already being done for this in Kazakhstan. Domestic tourism is a prospective business. Tourism sector should be further developed. Besides this, the trade sector should also gain momentum. It will certainly show growth,” Amirtai said.
Expert says that the Kazakh government has been already changing its approach to the development of the country’s SME sector.
“The government will be actively supporting and protecting the SMEs. There will be economic diversification in the country. Therefore, the approach of the government, as well as people and companies to the money making will completely change. Their attitude to one another will also alter,” Amirtai said.
Experts estimate that in the new post-COVID-19 world businesspeople will mostly invest their money in agriculture, including crop production, livestock and rural tourism. The World Bank and the European Bank for Reconstruction and Development will be investing more in the environmental projects as well.