Kazakhstan’s Economic Path: Navigating Growth and Challenges
Kazakhstan’s Economy Faces Challenges Amid Moderate Growth in 2024
ASTANA—Kazakhstan experienced moderate economic growth in 2024, with the non-oil sector playing a significant role in driving expansion. However, the country also faced lingering challenges that need to be addressed in 2025 to sustain this growth.
According to an analytical article by Economy.kz, trade, construction, and agriculture were key drivers of growth in 2024, with notable growth rates recorded in each sector. The trade sector performed well, supported by strong retail sales, but concerns were raised about declining real household incomes and reduced imports. The manufacturing industry and mining sector also saw growth, albeit at varying rates.
Kazakhstan maintained a trade surplus in 2024, with exports increasing and imports declining. However, reduced machinery and equipment imports impacted the overall import structure, highlighting the need for diversification in the economy. Investment in fixed assets slowed down, primarily driven by a decline in private investment activity.
Household incomes decreased, exacerbating the impact of inflation and limiting domestic demand. Regional disparities further compounded the challenges, with economic growth concentrated in urban centers while oil-dependent regions faced declines.
Looking ahead to 2025, development institutions predict promising GDP growth, albeit with some varying estimates. Growth is expected to be driven by exports, petrochemical production, stable investments, and higher consumer spending. However, achieving sustainable growth will require continued fiscal reforms, strict monetary policies, and a focus on long-term stability.
Overall, Kazakhstan’s economy has shown resilience in the face of challenges, and with strategic planning and policy adjustments, the country can build on its gains and navigate through uncertainties to achieve sustained growth in the coming year.
