Kazakhstan Approves Methodology For Calculating Potential GDP
The move is part of efforts to ensure high-quality economic growth and further improve macroeconomic analysis.
Potential GDP reflects the maximum level of output an economy can achieve when production factors are fully utilized and inflationary pressures are absent.
According to the ministry, calculating this indicator will make it possible to determine the natural limits of Kazakhstan's economic growth and assess whether actual economic performance is above or below its potential level.
The methodology incorporates international approaches to estimating potential GDP and is based on the widely used Cobb-Douglas production function. It evaluates the contribution of key growth factors, including employment expansion, growth in investment and fixed capital, as well as technological progress, measured through total factor productivity.
The calculations will be based on official data provided by the Bureau of National Statistics.
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