Kazakhstan attracts $3.6 billion in overseas direct funding in Q1 2020

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The gross influx of overseas direct funding within the economic system of Kazakhstan amounted to $ 3.6 billion within the first quarter of this yr, analytical company Finprom mentioned on September 14.

The Netherlands ($988.Three million), the United States ($744.9 million) and Russia ($379.9 million) are the top-Three largest buyers in Kazakhstan.

“In 2018-2019, we observed a decrease in investment activity around the world, but in Kazakhstan in 2018 the gross inflow of foreign direct investment increased by 15.8% over the year, and in 2019 it remained at the level of the previous year – $24 billion,” Finprom mentioned.

The company’s analysts additionally commented concerning the tendencies within the second quarter of this yr. “According to the results of the second quarter of this year, the global economy retained its dynamics of decline. The introduced quarantine measures aimed at containing the spread of the pandemic dealt a serious blow to economic activity. Despite this, according to the estimates of many international rating agencies, Kazakhstan retains a low level of public debt and a significant amount of fiscal reserves, sufficient to cushion external shocks,” analysts say.

According to the forecast knowledge of the Ministry of National Economy of Kazakhstan, the actual development of the nation’s GDP in 2021 will likely be 2.8%, and in 2025 – 4.6%. Positive development is predicted in all primary industries. This yr, the score businesses Moody’s and FitchRatings have confirmed the score of Kazakhstan on the stage of funding reliability, Finprom’s specialists summarise.

In the context of the disaster, diversification of the economic system, which is a key component of Kazakhstan’s overseas financial coverage, is of specific significance and is in dire want of attracting overseas funding. Today, a beneficial funding local weather has been created in Kazakhstan: a simplified tax regime is in impact, nationwide laws is consistently being improved, and the package deal of funding preferences is increasing. The authorities of the republic assure the soundness of tax laws for buyers implementing funding tasks in precedence sectors.