Analytical Credit Rating Agency published a report, affirming Kazakhstan’s credit ratings at BBB+, and changing the outlook from Negative to Stable. According to analysts, the improvement of the position was caused by a high level of economic wealth, moderate public debt, a significant amount of liquid assets in Kazakhstan’s National Fund, and a sufficient number of international reserves.
“Kazakhstan emerged from the year of crisis with a moderate increase in public debt compared to many developed and emerging economies. ACRA views the increase in government debt to 24.5% of GDP by the end of 2020 as moderate and expects government debt to increase only slightly in 2021 as the economy recovers and the budget deficit falls,” the report states.
The agency analysts expect further improvement in economic indicators in Kazakhstan, particularly, they expect the inflation to return to the target corridor of 4 to 6 percent this year. This will happen due to a reduced pressure on the national currency and the exhaustion of the effect of the 2020 inflationary shock.
