ASTANA – Kazakhstan’s economy to grow by 4% this year, with upside from public spending to restore flood-affected infrastructure and housing, according to the latest edition of European Bank for Reconstruction and Development’s (EBRD) Regional Economic Prospects report, published on Sept. 26.
Photo credit: EBRD
“The trade, transport, warehousing, services and information technology (IT) sectors were the main growth drivers for Central Asia’s largest economy, Kazakhstan in the first half of the year. According to the Regional Economic Prospects report, in 2025, real gross domestic product (GDP) is likely to grow by 5.5% amid the planned expansion of the Tengiz oil field,” the report says.
According to the EBRD, the short-term regional economic outlook for Central Asia remains positive. Regional growth is set to reach 5.1% this year and accelerate to 5.9% in 2025 on stronger commodity revenues, infrastructure investment and market-oriented reforms.
“Despite extreme weather conditions, which have resulted in severe flooding in Kazakhstan and livestock losses in Mongolia, the Central Asian economies have continued to grow. Sustained remittance inflows, higher wages and greater international tourism interest in the region have been the main contributors to this growth. The latter was a major catalyst for the development of the hospitality and services sectors in the first half of 2024,” states the report.
The Regional Economic Prospects report forecasts the Kyrgyz Republic’s GDP growth to reach 9% this year before moderating slightly to 7% in 2025. The EBRD expects Mongolia’s GDP growth to reach 5% this year and expand by 8% the following year.
“Tajikistan’s GDP growth is projected to reach 8% in 2024 and 7% in 2025, thanks to strong domestic demand and elevated infrastructure investment. Turkmenistan’s economy is projected to grow by 6.3% in both 2024 and 2025. The EBRD expects Uzbekistan’s economy to expand by 6% in both 2024 and 2025 on continued market-oriented reforms and infrastructure investments,” according to the EBRD.
