Kazakh Economy Maintains 5% Growth Rate in First Half of 2023

ASTANA – The economy of Kazakhstan grew 5% in January-June this year, seeing the positive dynamics in the real sector by 4.8% and the service sector by 4.9%, Kazakh Minister of National Economy Alibek Kuantyrov said at a July 12 government meeting, reported the Prime Minister’s press service.

Alikhan Smailov chairs a July 12 government meeting. Photo credit: primeminister.kz.

The mining and manufacturing industries, construction and the service sector amplified the economic growth, Smailov noted.

Production in mechanical engineering increased by almost 30%, including a 40% growth in the automotive industry, 36% – in the production of locomotives and wagons, and 35% – in the production of electrical equipment. The light industry showed a 24% increase, with an approximate 42% growth in the production of textiles.

Along with a 3.5% increase in the chemical industry, the production of beverages, food, plastic, minerals and finished metal products also rose.

According to the Prime Minister, crude oil production growth by 5.6% and natural gas by 2.5% ensured positive dynamics in the mining industry. 

The construction sector grew by more than 12%, agriculture by 3%, and services by almost 5%. This was achieved through the growth of trade by 10.4%, information and communications by 8.8% and transport by 7.4%.

Kuantyrov said investments in fixed assets grew by 13%, with a 56.8% surge in transport and warehousing, 32.2% in trade, 22.1% in agriculture, 21.5% in education, and 10.9% in the manufacturing industry.

Preliminary results demonstrated that foreign trade turnover increased 8% to $55.8 billion in January-May. 

Exports reached $31.6 billion, with processed goods trade growing by 3.8% to $10.2 billion. Imports hit $24.2 billion. 

Smailov highlighted the need to maintain the economic growth rate at 5% by the end of the year, tasking the ministers to intensify efforts to diversify the economy, create jobs and attract strategic investors.

“We must be prepared for various development scenarios, considering the current geopolitical situation,” he said.

Another important task Smailov noted is to contain inflation., which slowed to 14.6% in annual terms in the first half of 2023. 

The Prime Minister emphasized the importance of implementing the comprehensive privatization plan, which will reduce the state’s share in the economy to 14.4% of GDP.

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