The National Bank of Kazakhstan predicts a 21.7% reduction of exports in the year 2020.
In the first half of the year, the country’s current account balances ended with a surplus of $1.7 billion due to the reduction of earnings payable to foreign direct investors. However, account deficits of $4.2 billion are expected until the end of 2020.
According Yerbolat Dossayev, the Kazakh National Bank Head, the country’s exports will decrease by 21.7%, to $45.5 billion, as a result of falls in oil and metal prices as well as lower oil production as part of the OPEC+ agreement. Despite that, decline in exports is to be partially offset by the reduction of earnings payable to foreign direct investors, operating in the commodity sector.
Import of goods is to reduce less compared to exports and will amount $33.8 billion. The reduction of imports is attributable to a lack of effective demand from the population and businesses due to the COVID-19 virus as well as the slowing pace at which investments projects in the oil sector are being implemented. (Kazinform/Business World Magazine)