Kazakhstan’s Economy Grows 5% in First Half of 2023

ASTANA – The growth of Kazakhstan’s economy reached 5 % in the first half of this year, with a 4. 8% increase in the real sector and 4.9 % – in the service sector, Ranking.kz reported on Aug. 9.

Photo credit: ranking.kz.

All major industries witnessed positive dynamics, with the highest indicators recorded by the construction sector with a 12.3% growth, trade – 10.4%, and information and communication – 8.8%.

Despite the global geopolitical upheavals, Kazakhstan’s economy grew by 3.2% in 2022, showing resilience for several years. The largest share in the country’s GDP falls on wholesale and retail trade, and repair of cars and motorcycles (16.4%), mining and quarrying (14.5%), manufacturing industry (13.4%), transactions with real estate (6.5%), and construction (5.3%).

According to the International Monetary Fund (IMF) forecast, Kazakhstan’s economy will grow by 4.3% in 2023 and by 4.9% in 2024, much higher than the world average increase of 1.8% in 2023 and 2% in 2024.

The quasi-public sector plays a special role in economic development and growth. The largest representative of this sector is the Samruk Kazyna Sovereign Wealth Fund, which aims to improve the national welfare and ensure long-term sustainability for future generations.

The holding considerably impacts the economy, as its assets account for 32.4% of the country’s GDP. The fund strives to gradually reduce state participation in Kazakhstan’s economy by privatizing its subsidiaries.

In 2022, the amount of consolidated assets of Samruk Kazyna reached 33.6 trillion tenge ($75.4 billion), the highest figure in recent years. The Samruk Kazyna group’s companies successfully overcame the pandemic’s consequences and restored sustainable growth. The revenue totaled 14.8 trillion tenge ($33.2 billion).

The same year, the fund paid 170 billion tenge ($381.8 million) of dividends to the state budget, allocating 132 billion tenge ($296.4 million) to support social and infrastructure projects. The tax paid to the budget reached 1.7 trillion tenge ($3.8 billion).

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