Kazakhstan's economy is set to experience a moderate growth acceleration, with real GDP forecast to rise by 3.5 percent in 2023 and 4 percent in 2024, propelled by the hydrocarbons sector, as oil production increases. Inflation has surged to its highest level since the late 1990s due in part to wage increases across sectors and crisis-related fiscal measures. Inflation is expected to remain high in 2023 due to elevated food prices and prices of imported intermediate goods. The outlook for growth faces several downside risks. Any further disruptions to the operation of the Caspian Pipeline Consortium could lead to losses in production volumes and fiscal revenues, posing downside risks to growth. The persistent high domestic inflation is a serious challenge, particularly for the most vulnerable households, and could potentially amplify the risk of social tensions. Additional tightening of global financial conditions due to geopolitical tensions, energy crisis, and high inflation may pressure the exchange rate, leading to potential capital flow volatility.