ASTANA – A new Asian Development Bank (ADB) country analysis identifies diversification, manufacturing and agriculture among Kazakhstan’s opportunities for economic growth.
Diversification of the economy and introducing reforms favourable to its development will help Kazakhstan realise its growth potential, according to the ADB report.
The study estimated that a good business climate and recommended reforms in key sectors should result in 1.2 percentage growth per year, increasing Kazakhstan’s GDP growth to 3.5 percent. Kazakhstan has set a goal of annual growth of 5 percent by 2025.
The ADB analysis also determined that agriculture, manufacturing and trade have high growth potential.
The vast Kazakh land offers good agricultural potential. According to ADB’s analysis, there is enough financial and political interest to achieve its sustainable development. To optimise that potential, ADB recommends state support for water resource management, rural road improvement and agricultural scientific research. The government should also encourage private investment through flexible land markets, stable and transparent policies and streamlined management.
In manufacturing, the report recommends collaboration between the private sector and the government to identify economic opportunities and eliminate obstacles. It also recommends a focus on vocational and workplace training. The report also recommends the encouragement of small and medium-sized enterprise (SME) networks and improvements in transport infrastructure, logistics and energy systems. Such transport and logistics improvements, according to the report, would help diversify exports.
Given global oil prices and the World Bank’s expected 1.6 percent oil price growth in Kazakhstan, the ADB analysis points to diversification as necessary to achieve Kazakhstan’s GDP goals.
The ADB’s recommendations are similar to Kazakhstan’s existing goals to diversify its economy beyond oil and gas and create a favourable business climate to grow other sectors of its economy.
The bank’s mission is to reduce poverty in the Asia-Pacific region through inclusive economic and environmentally sustainable growth, as well as regional integration.