ASTANA: Oil-rich Kazakhstan, Central Asia's largest economy, has cut its forecast for economic growth to between 5.0 percent in 2015 and 6.5 percent in 2019 after the economy slowed in the first half of this year, the National Economy Ministry said on Thursday.
In its previous five-year outlook last year, the government had forecast gross domestic product would grow between 6.0 percent and 7.1 percent in 2014-2018.
The new forecast is based on the economy's growth in the first half of this year and on expected production volumes in 2015-19, the ministry said.
It also said it had taken into account estimates of global growth by international institutions and on world prices for major commodities.
Kazakhstan, a vast steppe nation five times the size of France but populated by just 17.3 million people, relies heavily on exports of oil and industrial metals. It is also a major exporter of wheat.
The country's GDP grew 6 percent last year after a 5 percent rise in 2012. But in the first half of 2014 growth slowed to 3.9 percent year-on-year, compared with 5.1 percent in the same period of 2013.
A slowdown in Russia, Kazakhstan's main trading partner, and lower oil and non-ferrous metal output weighed on the economy.
In May, the presidents of Russia, Kazakhstan and Belarus signed a treaty to create a trading bloc which they hope will challenge the economic might of the United States, the European Union and China.
The new trading bloc, the Eurasian Economic Union, will come into force on Jan. 1, 2015. Some critics see it as an attempt by Russian President Vladimir Putin to resurrect the former Soviet Union as much as possible.
Kazakhstan's economic growth is also being held back by delayed output from its mammoth Kashagan oilfield, the world's biggest oil find of recent time.
After several delays and massive cost overruns, output at the field finally began in September 2013. But it halted in October, after gas leaks were detected in its pipeline network. Output is now expected by resume sometime in 2016.
Kazakhstan is still officially targeting GDP growth of 6 percent this year, but that looks less likely after the slower growth in the first half.
The government expects nominal GDP to rise from 45 trillion tenge ($247 billion) in 2015 to 72.8 trillion tenge in 2019. It forecasts per capita GDP to reach $21,400 in 2019, compared with more than $13,900 in 2015.
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