GDP growth rate - 8%, inflation - 9% in 2006 - IMF forecast

Almaty. May 18. Kazakhstan Today - GDP growth rate will make 8% in Kazakhstan in 2006 and inflation will reach almost 9%. The senior adviser of the department of the Near East and Central Asian countries of the International monetary fund (IMF) David Owen made the forecast today during videoconference on the current economic situation review and prospects of development of Central Asian countries, the agency reports.

For the last years economic growth rate in Kazakhstan has been especially high, at the level of 10% a year. The main reason for this has been high oil prices. D. Owen predicted growth rate for 2006 will remain at the level of 8%.

According to IMF researches, budget proficiency and the balance of payments will remain the same in Kazakhstan. "At the same time credit growth will exceed 70%, and inflation will reach almost 9%," the report says.

The key task for Kazakhstan economy should become toughening of monetary and credit policy, strengthening bank regulation and supervision with the purpose of restriction of bank sector risk and restraint of inflation, D. Owen emphasized. "Toughening of monetary and credit policy will create an opportunity for expansion of use of oil revenue for improvement of quality of infrastructure, public health services and education," the expert said.