In 2016, Kazakhstan's GDP growth continued to slow and real wages declined further, negatively affecting poverty rates. The authorities reacted by extending additional spending measures and easing monetary conditions. In the medium term, Kazakhstan's economic growth rate is projected to pick up slowly, but it will remain below pre-2014 levels (when the oil price shock hit the economy). In the longer term, Kazakhstan's desire for an economic transformation to more sustainable and inclusive growth will require completing the macroeconomic adjustment, addressing the legacy of SOEs and financial sector issues, and fostering development of a more dynamic, export-oriented and productive private sector.