2023 Sees Strong Economic Growth in Kazakhstan, Says Prime Minister
Kazakhstan’s Economy Shows Steady Growth, PM Smailov Shares in TV Interview
In a recent interview with the 24KZ TV channel, Prime Minister Alikhan Smailov reflected on the positive developments in Kazakhstan’s economy for the year. Despite global challenges, the country’s economy has shown steady growth, reaching 4.9% over the first 11 months, with an expected year-end growth close to 5%.
Smailov highlighted positive trends in all major sectors, including a 13% growth in the construction sector, 11% in trade, and 8% in the communications sector. He also emphasized the role of investment in driving economic growth, noting that the volume of investment in fixed capital increased by 15% to 15 trillion tenge ($33 billion).
The Prime Minister also discussed Kazakhstan’s leading position in gross inflow of foreign direct investment (FDI) among Central Asian countries, with FDI growing 18% last year to reach $28 billion, a record-high figure for the country in a decade. He revealed plans to attract at least $25 billion of FDI every year as part of President Kassym-Jomart Tokayev’s initiative to double the national economy to $450 billion by 2029.
Addressing inflation, Smailov stated that the expected year-end inflation rate would be 9.8%, representing a twofold reduction, with plans to target an inflation rate of 6-8% for the next year.
The Prime Minister also highlighted significant investments in various projects aimed at addressing water supply concerns, enhancing energy supply reliability, reducing traffic congestion, and ensuring stable gas supply. Additionally, he discussed the significant increase in transit traffic and the construction of new railway lines to enhance transportation capacity between Kazakhstan and China.
Lastly, Smailov emphasized the shift from raw material extraction to higher value-added industries, noting the substantial change in the industrial structure and the acceleration of diversification in the economy. Plans are in place to introduce over 400 projects with a total value of 4.6 trillion tenge ($10 billion) next year, further demonstrating the country’s systematic move away from a raw material focus.
Overall, the interview with Prime Minister Smailov shed light on the positive trajectory of Kazakhstan’s economy and the government’s commitment to driving sustainable economic growth and development.
