Kazakhstan Records Economic Growth of 4.9% in 11 Months, Prime Minister Sets Ambitious Targets for Future

ASTANA — Minister of National Economy Alibek Kuantyrov revealed a commendable economic growth rate of 4.9% for the first 11 months of this year at a Dec. 12 government meeting on the socio-economic development of Kazakhstan, the Prime Minister’s press service reported. 

According to Prime Minister Alikhan Smailov, key to the economic success is bringing investments to non-resource sectors. Photo credit: Primeminister.kz

Kuantyrov, presenting the findings, detailed that the real sector witnessed a growth of 3.5%, while the service sector outperformed with a substantial 5.6% increase. Construction, trade, information and communications, transport, and warehousing contributed significantly to this positive trend.

Prime Minister Alikhan Smailov said investing in non-resource sectors is the key to economic success. Smailov highlighted manufacturing, agriculture, transport, logistics, IT, and tourism as focal points for investment projects. He underscored the government’s commitment to improving the quality of both foreign and domestic investments and enhancing infrastructure through the domestic stock market. Additionally, special powers granted to the Investment Headquarters are expected to streamline and strengthen the investment process.

Minister of National Economy Alibek Kuantyrov revealed a commendable economic growth rate of 4.9% for the first 11 months of this year at a Dec. 12 government meeting. Photo credit: primeminister.kz

Government’s Investment Strategy and Investment Growth

According to Kuantyrov’s report, the investment growth rate in fixed capital surged by an impressive 14.6%. Information and communications saw a staggering 2.8-fold increase in investments, while transport and warehousing experienced a remarkable 58% growth. Trade, education, agriculture, and industry also benefited from increased investment, with the manufacturing industry seeing a 4.6% growth. The Mangystau, Turkistan, Pavlodar Regions, and the Abai Region demonstrated the most promising economic indicators.

Smailov urged a shift in government support measures towards competitive, export-oriented, and high-tech companies. He stressed the importance of implementing the “clean slate regulation” principle and finalizing the Risk Management System in state control and supervision.

Foreign Trade Turnover 

Kazakhstan saw a 2.6% increase in turnover in foreign trade, surpassing $114 billion in January-November 2023. Exports reached nearly $65 billion, with processed goods accounting for around $21 billion. Imports reached over $49 billion, resulting in a positive trade balance exceeding $15 billion.

The manufacturing industry remained robust, with a 3.4% increase in production volume. Positive growth was recorded in 13 regions, with notable increases in Kyzylorda, Kostanai, Abai, and Almaty. Mechanical engineering, automotive, electrical equipment, food production, metal products, building materials, plastic products, light industry, and furniture contributed to this expansion.

In the mining industry, production increased by 5.2%, with notable rises in gas production by 12%, oil production by 7.8%, and production of other minerals by 13%. However, mining of metal ores declined by 0.5%, services in the mining industry by 2.6%, and coal mining by 5.8%.

The government’s focus on sustained economic growth aims to achieve a stable growth rate of at least 6%, as outlined by Smailov, who concluded, “We have all the tools to solve it.”

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