The Kazakh economy is past the worst, with a rebound in oil prices offering support for the tenge, mitigating inflationary pressures, and allowing for monetary policy easing in the coming months. Strong sovereign position will prevent a collapse of the banking system.
Continued investment in the infrastructure sector will provide domestic support for Kazakhstan's economy, while we expect remittance inflows into the country to rise steadily on the back of an improving Russian economic outlook.
The governments ambitious privatisation programme, which seeks to reduce the share of the states participation in the economy from 70.0% in 2016 to just 15.0% by 2020 and liberalise the Kazakh economy.
The country's central role in the Chinese 'Belt & Road' infrastructure investment initiative will boost foreign direct investment and support economic diversification.
Heightened foreign direct investment will fuel long-term appreciation of the Kazakh tenge.