Kazakhstan Experiences Largest Economic Boost in Over a Decade during First Half of Year
In a remarkable display of economic resilience, Kazakhstan's economy is experiencing a significant surge in growth, bolstered by strong performances in various sectors. The Central Asian nation continues to maintain a positive trade balance of $6 billion, despite a general decline in foreign trade, according to the Prime Minister's press service.
At the forefront of this growth is the real sector, which expanded by 8%, driving the economy forward. Key factors propelling this growth include a strategic pivot towards renewable energy, structural diversification, and focused government policies.
Prime Minister Olzhas Bektenov chaired a government meeting on July 15, where Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin, revealed that based on current economic growth, Kazakhstan is expected to cross the $300 billion mark in GDP this year. This ambitious target is part of the President's vision to grow the economy to $450 billion by 2029, a goal that Bektenov described as "ambitious but achievable."
The growth is driven mainly by nine key goods, including oil and oil products, gas, household appliances, mobile phones, pharmaceuticals, engineering products, grain, and tobacco, which account for over 45% of wholesale trade. Sectors such as transport, construction, mining, manufacturing, agriculture, and services have also seen impressive growth. Transport, for instance, experienced a 22.7% surge, while construction saw a 18.4% increase.
Gold and foreign exchange reserves have also swelled, increasing by 13.5% to $52 billion, and gross international reserves rose by 7.4% to $112.3 billion since the start of the year. The assets of the National Fund, a sovereign wealth fund that accumulates revenue from the country's oil and gas sector, grew by 2.6% to $60.3 billion.
Grain and flour exports have surged by 35.2%, totaling 11.8 million tons, with grain exports hitting a 13-year high at nine million tons. This growth has been fueled by a strong performance in the industrial sectors, which includes manufacturing, construction, transport, trade, and communications.
Moreover, fixed capital investments have risen by 19.3%, notably in education, financial and insurance activities, manufacturing, healthcare, and transport. This domestic demand-driven growth, particularly investment demand, is a significant contributor to the 2025 economic expansion.
Despite inflationary pressures and some currency depreciation concerns, the government and National Bank expect relative stability in the national currency (tenge), supporting stable economic conditions for growth. The government's strategic focus on boosting investment, expanding manufacturing, supporting non-oil exports, and enhancing digitalization is further strengthening Kazakhstan's economic growth trajectory.
Large-scale investment plans, sectoral focus on clean energy, transport, and agriculture, and a strategic shift away from resource dependency are all key elements in Kazakhstan's economic growth strategy. These efforts are laying the groundwork for achieving the goal of a $450 billion GDP by 2029.
The strategic shift towards renewable energy and the growth in sectors like transport, construction, manufacturing, and services have propelled the finance sector's growth, as increased investments and exports contribute to Kazakhstan's GDP. With the industrial sectors' performance strengthening, there is a heightened potential for higher finance industry revenues in the future.
The government's investment plans, particularly in the sectors of clean energy, transport, and agriculture, are expected to boost the finance industry further, making a significant contribution to the country's economic growth target of $450 billion by 2029.
