Kazakhstan’s Manufacturing Output Soars to $48.7 Billion in 2023
Kazakhstan’s manufacturing sector has shown significant growth in 2023, with the production value reaching 21.6 trillion tenge ($48.7 billion). Minister of Industry and Construction Kanat Sharlapayev highlighted this positive development during an April 29 government meeting in the Mazhilis, the lower house of the Kazakh Parliament.
The growth in the manufacturing sector was driven by increases in various industries, including a 38% rise in woodworking, 25.4% in mechanical engineering, 12.2% in the light industry, and 6.1% in the construction industry. Investments in fixed capital also saw growth, increasing by 11.2% compared to the previous year, totaling 1.7 trillion tenge ($3.8 billion). Additionally, exports of manufactured goods amounted to $25.3 billion last year.
Sharlapayev emphasized the key goal of the industrial policy enacted in 2021, which aims to reduce reliance on raw materials and focus more on domestic processing. The industrial policy aims to strengthen Kazakhstan’s industrial capacity, enhance its competitiveness, and reduce import dependence. Last year, an updated concept for the development of the manufacturing industry for the next six years was adopted following an analysis of outcomes and challenges.
The strategic document includes measures to boost industrialization, improve the investment climate, and attract both domestic and foreign investment in key sectors. Sharlapayev also announced plans for the rare and rare earth metals industry, with agreements in place for joint development with international companies.
The mechanical engineering sector saw a 24.9% growth in the first quarter of the current year, with ongoing efforts in the automotive industry to shift towards more complex vehicle assembly processes. Plans are in place to increase the proportion of complete knockdown in production, aiming for 50% by 2027.
Overall, Kazakhstan’s manufacturing sector is poised for continued growth, with numerous investment projects planned to create jobs and drive economic development in the country.
