The National Oil Fund proves its worth
Overview:
Kazakhstan has been suffering from an economic downturn from as early as Q42007. While its vast hydro-carbon resources ensure its economic potential it had allowed hectic economic growth to become too dependent on bank-lending fuelled by huge capital inflows. Given the onset of the global financial crisis, 2008 was a difficult year of trying to work through this debt over-hang. 2009 will, likewise, also be tough. The authorities can, though, draw on the fruits of their previous sound macro-economic management, with the recently announced Anti-Crisis Program drawing heavily on assets accumulated in the National Oil Fund. The government is keen to limit the effects of the crisis on the real economy (i.e. limit the rise in unemployment) given that economic development has been the basis of its support.