Asian Development Bank: Stagnant Growth Predicted for Kazakhstan
The Asian Development Bank (ADB) has maintained Kazakhstan’s economic growth forecast for 2024 at 3.8%, according to the latest edition of the Asian Development Outlook 2024 released on July 17th. The country’s growth forecast for 2025 has also been kept at 5.3%.
Despite global economic challenges, Kazakhstan’s economy, as the region’s largest, is expected to remain stable. The economy grew by 3.7% in the first quarter of the year, driven primarily by construction, manufacturing, and services sectors.
The report highlights that construction and manufacturing will continue to be the key drivers of economic growth this year. Government support for flood victims and the reconstruction of damaged infrastructure after severe floods are expected to sustain robust growth in the construction sector. The central bank’s business activity index showed expansion in May, supported by positive business sentiment as reported by S&P Global’s manufacturing purchasing managers’ index. The mining sector is also expected to contribute significantly to Kazakhstan’s growth in the medium term, following the completion of the Tengiz oil field expansion project in the second quarter of next year.
In terms of inflation, it is projected to remain at 8.7% in 2024 and 6.3% in 2025.
Overall, Kazakhstan’s economic outlook remains positive, with various sectors contributing to growth and stability in the coming years.
