World Bank2014-06-122014-06-122014-03-31https://hdl.handle.net/10986/18651This economic update is structured as follows: section A describes the recent economic developments, with a focus on emerged imbalances in the external accounts, which led to growing depreciation expectations and resulted in the one-off tenge devaluation in early 2014. Section B provides an overview of recent macroeconomic policies and the government's forward-looking vision of moving toward a diversified knowledge-based economy by improving the country's endowments. Section C outlines the medium-term economic prospects for Kazakhstan, which is expected to benefit from the global economic recovery, but face risks, both external and domestic. Section D discusses possible short- to medium-term impacts of the devaluation on the economy and suggests a set of policy measures to mitigate inflationary pressures.en-USCC BY 3.0 IGOACCOUNTINGAMORTIZATIONASSET POSITIONAVAILABILITY OF CREDITBALANCE OF PAYMENTSBALANCE SHEETBANK ACCOUNTSBANK DEPOSITSBANK LOANSBANKING SECTORBANKING SYSTEMBILLBORROWERBUDGET DEFICITBUFFERCAPACITY BUILDINGCAPITAL ADEQUACYCAPITAL FLOWCAPITAL INVESTMENTCENTRAL BANKCENTRAL BANKSCOLLATERALCOMMERCIAL BANKSCOMPETITIVE DEVALUATIONCOMPETITIVENESSCONSUMER CREDITSCONSUMER LOANSCONSUMER PRICE INDEXCONSUMPTION GROWTHCORE INFLATIONCREDIT GROWTHCREDIT LINECURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT SURPLUSCUSTOMS UNIONDEBT MARKETSDEBT RESTRUCTURINGDEBT SERVICINGDEBT SOURCESDEPOSITDEPOSITSDEPRECIATIONDEVALUATIONDEVELOPING COUNTRIESDIRECT INVESTMENTSDISBURSEMENTDISBURSEMENTSDOMESTIC DEMANDDOMESTIC INFLATIONDOMESTIC PRICESDOMESTIC SAVINGSDUTCH DISEASEECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC MODELECONOMIC POLICYEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET CURRENCIESEMERGING MARKETSEUROBONDEXCHANGE RATEEXCHANGE RATE DEVALUATIONEXCHANGE RATE POLICYEXCHANGE RATE REGIMESEXCHANGE RATESEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT MARKETSEXPORTERSEXTERNAL BALANCEEXTERNAL BALANCESEXTERNAL BORROWINGSEXTERNAL DEBTEXTERNAL DEMANDEXTERNAL FUNDINGEXTERNAL INDEBTEDNESSEXTERNAL POSITIONEXTERNAL SHOCKSFEDERAL RESERVEFINANCIAL ASSETFINANCIAL ASSETSFISCAL BALANCEFISCAL BALANCESFISCAL POLICIESFISCAL POLICYFIXED CAPITALFIXED INVESTMENTFLEXIBLE EXCHANGE RATEFLEXIBLE EXCHANGE RATE REGIMEFOOD PRICESFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEGLOBAL MARKETSGOLDGOLD RESERVESGOVERNMENT DEBTGOVERNMENT DEFICITSGOVERNMENT INVESTMENTSGOVERNMENT POLICYGOVERNMENT REVENUEGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROWTH RATEHIGH-INCOME COUNTRIESHOLDINGHOLDINGSHUMAN CAPITALHUMAN DEVELOPMENTIMBALANCESIMPORTIMPORT PRICESIMPORTSINFLATIONINFLATION RATEINFLATIONARY IMPACTINFLATIONARY PRESSUREINFLATIONARY PRESSURESINFRASTRUCTURE DEVELOPMENTINSTRUMENTINSURANCEINTELLECTUAL PROPERTYINTEREST RATESINTERNATIONAL RESERVESINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVESTINGINVESTMENT ACTIVITIESINVESTMENT ACTIVITYINVESTMENT FLOWSINVESTMENT INFLOWSINVESTMENT PROJECTSISSUANCESLABOR FORCELENDING PORTFOLIOSLIQUID ASSETSLIQUIDITYLOANLOAN PORTFOLIOLOCAL CURRENCYLONG-TERM INVESTMENTSMACROECONOMIC DATAMACROECONOMIC POLICIESMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMONETARY AGGREGATESMONETARY POLICYMONEY SUPPLYMORTGAGESNATIONAL BANKNATURAL RESOURCESNET DEBTNOMINAL EXCHANGE RATENON-PERFORMING LOANSNONPERFORMING LOANSNPLOIL ECONOMYOIL EXPORTSOIL PRICEOIL PRICESOIL REVENUEOIL SUPPLYOPEN ECONOMIESPENSIONPENSIONSPORTFOLIOPORTFOLIO INVESTMENTPORTFOLIO INVESTMENTSPOSITIVE COEFFICIENTPOST-CRISIS PERIODPRICE INCREASESPRIVATE BANKSPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRIVATE MONEYPRIVATE SAVINGSPRIVATE SECTOR INVESTMENTPROPERTY RIGHTSPUBLIC FINANCESPURCHASING POWERPURCHASING POWER PARITYRATE OF GROWTHREAL EXCHANGE RATERECESSIONREGULATORY REFORMSREMITTANCESREPOREPO RATESRESERVERESERVE ACCUMULATIONRESERVESRETURNRETURN ON ASSETSRIGID EXCHANGE RATE REGIMERULE OF LAWSHARE OF CREDITSHORT-TERM LIQUIDITYSLOWDOWNSTOCK EXCHANGESTRUCTURAL REFORMSTARIFF BARRIERSTAXTAX SYSTEMTOTAL CREDITTOTAL DEBTTOTAL DEPOSITSTOTAL EXPORTSTOTAL EXTERNAL DEBTTOTAL IMPORTSTRADE BALANCETRADE FACILITATIONTRADE POLICYTRADE SURPLUSTRANSITION COUNTRIESUNCERTAINTIESUNCERTAINTYUNEMPLOYMENT RATEWEALTH EFFECTWEIGHTSWITHDRAWAL10.1596/18651