WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

In Kazakhstan the economy recorded a remarkable rebound in 2010. The driving force behind this rapid growth was an upsurge in external demand for oil and metals. Those two sectors will continue to play the dominant role in the Kazakh economy. We expect investment to pick up in the wake of plans to expand the network of pipelines and increase public spending on other infrastructure projects. The after-effects of the housing bubble and banking crisis are still visible and pose an impediment to growth. Inflation will remain within the 6%-7% range, while the tenge will be revalued somewhat during the period forecast.