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Global liquidity crisis hits the Kazakh construction industry - June 2008
Until recently, the construction industry of the second largest member of the Commonwealth of Independent States had grown rapidly, by over 36% a year in 2000-2007. However, the financial turmoil on world markets which erupted mid-2007 has had a strong impact on the Kazakh construction market as its recent boom was largely financed with foreign loans. As a result of the crisis, business activity in the sector slowed and the value of construction works is expected to drop significantly. Nonetheless, in the medium-term a modest revival of the Kazakh construction industry is expected as the national economy struggles to overcome the consequences of the lower supply of money.
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