As the economy sputters in Kazakhstan, the government has been forced into a review of the ambitious and costly infrastructure projects it had hoped would prove a tonic for growth.
Providing a fresh and sobering update, economy minister Yerbolat Dosayev told a meeting of the Cabinet on November 18 that it is now expected the economy will grow by 1.2 percent in 2015, down from the earlier forecast of 1.5 percent.
A spike in inflation is also expected as a result of the plunging value of the national currency, the tenge, Dosayev said in remarks quoted by Tengri News. The tenge has fallen by nearly 40 percent against the dollar since the move to a free float in August.
The inflation forecast has been increased to 8-10 percent from the previous expectation of 6-8 percent, Dosayev said.
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