ASTANA – Despite challenges such as the coronavirus pandemic and global geopolitical tensions, Kazakhstan has made significant economic progress over the past six years under President Kassym-Jomart Tokayev’s leadership, Prime Minister Olzhas Bektenov stated in a March 17 article.
Olzhas Bektenov. Photo credit: gov.kz
By the end of 2024, GDP reached $288 billion, and GDP per capita increased by nearly half to over $14,000. Kazakhstan has approached the group of high-income countries.
Diversification and industrial growth
Tokayev prioritized economic diversification, particularly the development of the non-oil sector. From 2019 to 2024, manufacturing output grew by 31.4%, and construction expanded by 96.3%. In 2024 alone, 180 investment projects worth 1.3 trillion tenge (US$2.5 billion) were implemented in the processing sector, driving a nearly 6% growth rate, the highest in a decade.
Mechanical engineering production tripled over six years, and the average annual increase in industrial production was 20.3%.
The petrochemical industry has also advanced, transitioning from raw material exports to deep processing. Polymers, composite materials, and chemical reagents are high-value-added products in demand in various industries. The KPI plant in Atyrau, which has already been launched, produces polypropylene, making it the largest facility of its kind in Central Asia.
Foreign investment and trade expansion
Over the past six years, Kazakhstan has attracted $130 billion in foreign direct investment (FDI). Foreign partners began investing more in the processing industry, accounting for $72.7 billion. In 2024, Kazakhstan received the highest rating in its history, Baa1, with a stable outlook from Moody’s agency, while S&P and Fitch maintained investment-grade ratings.
Additionally, the UN named Kazakhstan the second largest recipient of FDI among landlocked countries.
Foreign trade turnover rose from $94.8 billion to $141.4 billion, and exports increased from $61.1 billion to $81.6 billion. Processed goods exports nearly doubled, reaching $28.8 billion, while the share of raw materials in exports fell from 74.5% in 2018 to 63.5% in 2024.
Digitization and artificial intelligence
Kazakhstan has doubled its exports of IT services and confidently leads among Central Asian countries. In five years, the volume of innovative products grew from 1.1 trillion tenge (US$2.1 billion) to 2.4 trillion tenge (US$4.7 billion).
The Qazaqstan Venture Group was established with a $1 billion target fund to accelerate AI development. The fund will prioritize investments in innovative projects in Kazakhstan and Central Asia.
The Alem.ai International Center for Artificial Intelligence is set to open this year to facilitate the accelerated digital transformation.
