EBRD predicts 4% economic growth in Kazakhstan for this year
Kazakhstan’s Economy Expected to Grow by 4% in 2024, EBRD Report Shows
The latest edition of the European Bank for Reconstruction and Development’s (EBRD) Regional Economic Prospects report indicates that Kazakhstan’s economy is projected to grow by 4% this year. This growth is attributed to increased public spending to restore flood-affected infrastructure and housing in the country.
According to the report, the trade, transport, warehousing, services, and information technology sectors have been the main drivers of growth in Kazakhstan in the first half of the year. The forecast for 2025 is even more promising, with real gross domestic product (GDP) expected to grow by 5.5% due to the planned expansion of the Tengiz oil field.
The EBRD also highlights a positive short-term economic outlook for Central Asia as a whole. Regional growth is expected to reach 5.1% this year and accelerate to 5.9% in 2025, driven by stronger commodity revenues, infrastructure investment, and market-oriented reforms.
Despite challenges such as severe flooding in Kazakhstan and livestock losses in Mongolia due to extreme weather conditions, Central Asian economies have continued to grow. Factors contributing to this growth include sustained remittance inflows, higher wages, and increased international tourism interest in the region.
The report predicts that the Kyrgyz Republic’s GDP growth will reach 9% this year before moderating slightly to 7% in 2025. Mongolia is expected to see GDP growth of 5% in 2024 and 8% in 2025. Tajikistan, Turkmenistan, and Uzbekistan are also projected to experience steady economic growth in the coming years.
Overall, the EBRD’s Regional Economic Prospects report paints a positive picture for Kazakhstan and its neighboring countries in Central Asia, with solid growth forecasts and ongoing investments in key sectors driving economic development in the region.
