UPDATE 1-Kazakhstan cuts oil output forecast, sees GDP shrinking this year

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NUR-SULTAN, April 2 (Reuters) - Kazakhstan’s economy will contract 0.9% this year on lower oil prices and output, forcing the government to withdraw more money from its rainy-day National Fund, Economy Minister Ruslan Dalenov said on Thursday.

The central Asian nation now plans to produce 86 million tonnes of oil in 2020, down from the previous forecast of 90 million tonnes, Dalenov told a government meeting.

Kazakhstan’s exports, dominated by oil, are set to be $16.3 billion lower than expected, and the outlook for budget revenue has been slashed by 1.672 trillion tenge ($3.7 billion), he said.

The government will tap the $60-billion National Fund for 4.77 trillion tenge ($10.6 billion) this year, up from the 2.7 trillion tenge it had planned. ($1=449.1100 tenge) (Reporting by Tamara Vaal; Writing by Olzhas Auyezov; Editing by Christian Schmollinger and Clarence Fernandez)