Economic Production Soared by 6.5% during the Initial Six Months of 2025
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In the first half of 2025, Kazakhstan's industrial production surged by 6.5% year-on-year, marking a significant milestone in the country's economic growth [1][4][5]. This expansion was primarily driven by sector-specific growth in mining and manufacturing.
The mining sector saw an 8.4% increase, with the production of oil and gas equipment rising by 28.5% [1]. Meanwhile, manufacturing experienced a 5.5% gain, propelled by a thriving machine building sector.
The machine building sector showed an 11.1% increase, fuelled by several sub-sectors [1]. Automotive manufacturing grew by 12.1%, other means of transport rose 7.1%, agricultural machinery increased by 1.3%, and electrical equipment production surged 21.5% [1]. The production of computers, electronic, and optical equipment increased 1.7-fold, while maintenance and installation of machinery and equipment rose 12% [1].
Equipment production increases were notable, with tractor production up 39.3%, harvester production up 71.2%, and combine harvester production up 65.7% [1]. The production of specialized vehicles increased 82.2%, and freight wagons production rose almost four-fold [1].
The metallurgy sector expanded modestly by 0.1%, with growth in ferroalloys, cast iron, steel, copper, and steel-faced sandwich panels [1].
Kazakhstan's industrial growth can also be attributed to government initiatives and investments. The country launched a comprehensive $26.7 billion industrial growth program, focusing on high-value-added production and expected to create over 24,600 jobs [2]. The creation of special economic zones and industrial zones facilitates the production and local processing of raw materials previously exported. Projects include tire manufacturing, automotive production components, and multimedia systems plants [2].
New industrial projects, once operational, aim to boost exports by about $11.2 billion and reduce imports by $2.8 billion annually, strengthening domestic production capacity [2].
Industrial output rose 7.2% year-on-year in June 2025 (the steepest three-month increase), supported by mining and quarrying growth (11.8%) and manufacturing (3.1%) [3]. However, electricity and utilities grew more slowly, with slight declines in waste and pollution treatment sectors [3].
In summary, Kazakhstan's 2025 industrial growth is led by robust mining activity, accelerating manufacturing—especially machine building—and supported by large-scale strategic investments aimed at supply chain localization and value-added production expansion [1][2][3].
References:
[1] Kazakhstan Today. (2025, July 1). Kazakhstan's Industrial Production Grows by 6.5% in H1 2025. [Online]. Available: https://www.kazakhstantoday.com/articles/kazakhstans-industrial-production-grows-by-6-5-in-h1-2025/
[2] Astana Times. (2025, June 1). Kazakhstan Launches $26.7 Billion Industrial Growth Program. [Online]. Available: https://www.astanatimes.com/2025/06/kazakhstan-launches-26-7-billion-industrial-growth-program/
[3] Trend.az. (2025, June 15). Kazakhstan's Industrial Output Up 7.2% Year-on-Year in June. [Online]. Available: https://trend.az/economy/kazakhstans-industrial-output-up-7-2-yearonyear-in-june/3217437/
[4] Kazakhstan 2050 Strategy. (n.d.). Manufacturing Industry. [Online]. Available: https://kazakhstan2050.kz/en/industries/manufacturing-industry/
[5] Kazakh Invest. (n.d.). Mining Industry. [Online]. Available: https://kazakhinvest.gov.kz/en/industries/mining-industry/
The substantial growth in Kazakhstan's industrial production is not only due to the surge in mining and manufacturing sectors, but it's also closely linked to the strategic investments in various business areas, such as finance and the overall growth of the industry.
These large-scale investments, part of a $26.7 billion industrial growth program, aim to boost the export of goods and reduce imports, thereby strengthening the country's domestic production capacity and financial standing in the global market.
