ALMATY: The International Monetary Fund expects Kazakhstan’s economy to grow 3.1% this year, it said on Thursday, much slower than the government’s forecast of 5.3%, due to the delays in the development of the giant Tengiz oilfield.

“Risks to the outlook remain tilted to the downside and include: delayed reform implementation; oil price declines, further delays in the Tengiz field expansion, and disruptions to oil exports through the Caspian Pipeline Consortium (CPC) pipeline; slow growth in trading partners; spillovers from the war in Ukraine and geo-economic fragmentation; and, increased social tensions,” the IMF said in a statement.

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An expansion project at Tengiz, the biggest producer of Kazakh crude, has been pushed back until the end of 2024.

The IMF also forecast that inflation in Kazakhstan would slow to 7.7% this year from 9.8% last year and urged the authorities to maintain a tight monetary policy.

The fund welcomed the government’s commitment to fiscal consolidation.