The crisis caused by events in Ukraine triggered huge problems across the Eurasia region. For Kazakhstan, headline growth estimates have been revised downwards from to 2.0-2.5% (from 4.0% last year). Refer to our Kazakhstan Briefing Modernization: Means, Motive and Opportunity, (issued in May), for an in-depth analysis of economic trends and political changes.
Having concentrated on fiscal and monetary reforms and on advancing big infrastructure projects, over the past five years, the government is now much more actively pursuing economic and export diversification projects, to create employment and support rural communities. Agriculture has emerged top of the priority sector list.
The Ukrainian government announced a package of an additional US$155 million of financial support for agriculture. This is in keeping with a recent increase in other general supports for agriculture. While officials have long favored consumers in their agricultural-food policies, it now appears to be pursuing a program of greater budgetary assistance for the sector.
Recent events in Minsk signal that political change has started in Belarus (see our separately published reports covering political and macro-economic analysis). While the timing is uncertain, what is clear is that political changes will also lead to policy changes and, very likely, a greater openness to foreign investors.
More focused. Having concentrated on fiscal and monetary reforms and on advancing big infrastructure projects, such as in the power sector, the Uzbek government is now much more actively pursuing economic and export diversification projects, especially in areas that can create employment and support rural communities. Agriculture has emerged as top of that list.
After many years of including the development of the agriculture and food sectors in five-year development plans, President Tokayev’s government has become a lot more focused on practical steps to help the sector grow and become a bigger part of the economy and exports.
Ministry of Agriculture forecast 114 million tonne grain harvest. The Ministry’s forecast, announced in mid January, is that 114 million tonnes of grain and pulses – including 70 million tonnes of wheat – will be produced in Russia in 2019, rising to 118 million tonnes in 2020. The 2019 forecast is slightly more than the 2018 harvest, which came in at 113 million tonnes (subject to revision), after the record 2017 of 134 million tonnes.