17.Dec .2020 23:00

Amidst Pandemic Kazakhstan Already Attracted US$ 3.6 Billion FDI

Amidst Pandemic Kazakhstan Already Attracted US$ 3.6 Billion FDI
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Kazakhstan is actively attracting foreign investments, the gross inflow of FDI during the first quarter of 2020 amounted to US$ 3.6 billion. The largest investors were the Netherlands, the USA, and Russia. 
In the first quarter of this year, gross FDI inflows amounted to US$ 3.6 billion. The largest investors were the Netherlands (US$ 988.3 million), the United States (US$ 744.9 million), and Russia (US$ 379.9 million).
According to the results of the second quarter of this year, the global economy retained its dynamics of decline. The introduced quarantine measures aimed at curbing the spread of the pandemic dealt a serious blow to economic activity. Despite this, according to the estimates of many international rating agencies, Kazakhstan retains a low level of public debt and a significant amount of fiscal reserves, sufficient to cushion external shocks, Kazinform IMA reports with reference to finprom.kz.
According to the forecast data of the Ministry of National Economy of the Republic of Kazakhstan, the real growth of the country's GDP in 2021 will be 2.8%, and in 2025 - 4.6%. Positive growth is expected in all basic industries. In addition, this year the rating agencies Moody's and Fitch Ratings confirmed the rating of Kazakhstan at the level of investment reliability.
Amid the crisis, diversification of the economy, which is a key element of the foreign economic policy of Kazakhstan, is of particular importance and is in dire need of attracting foreign investment. At present, a favorable investment climate has been created in Kazakhstan: a simplified tax regime is in effect, national legislation is constantly being improved, and the package of investment preferences is expanding. Investors implementing investment projects in priority sectors are guaranteed the stability of tax legislation. These measures have allowed Kazakhstan to improve the investment climate. So, for example, in 2018-2019, there was a decrease in investment activity around the world, but in Kazakhstan in 2018, the gross inflow of FDI increased by 15.8% per year, and in 2019 it remained at the level of the previous year – US$ 24 billion.