Global resilience of Kazakh economy showcased amidst international difficulties over the past six years
Rewritten Article:
Booming Economy Under Tokayev's Stewardship: A New Era for Kazakhstan
Even facing challenges such as the ongoing pandemic and international geopolitical turmoil, Kazakhstan has managed to achieve economic growth under the leadership of President Kassym-Jomart Tokayev, as highlighted by Prime Minister Olzhas Bektenov in a March 17 article.
Take a peek at Olzhas Bektenov, courtesy of gov.kz.
By the conclusion of 2024, Kazakhstan's GDP reached an impressive $288 billion, and the GDP per capita skyrocketed to over $14,000. The nation is edging towards the high-income country group.
Industrial Transformation and Economic Diversification
Tokayev has placed economic diversification at the heart of his approach, with a particular focus on developing the non-oil sector. From 2019 to 2024, production in the manufacturing industry surged by 31.4%, and construction exhibited a staggering 96.3% expansion. In 2024 alone, a staggering 180 investment projects worth 1.3 trillion tenge (equivalent to US$2.5 billion) were launched in the processing sector, driving a nearly 6% growth rate—the highest in a decade.
Mechanical engineering production more than tripled over the six-year period, while the average annual increase in industrial production stood at an impressive 20.3%.
Kazakhstan's petrochemical industry has also shown significant progress, moving from raw material exports towards deep processing. Products like polymers, composite materials, and chemical reagents, with high demand across multiple industries, are emblematic of the high-value-added goods being produced. The KPI plant in Atyrau, already up and running, manufactures polypropylene, making it the largest facility of its kind in Central Asia.
Attracting Foreign Investment and Boosting Trade
Over the past six years, Kazakhstan has attracted a remarkable $130 billion in foreign direct investment (FDI). Foreign investors have displayed a growing interest in the processing industry, contributing $72.7 billion to the sector. In 2024, Kazakhstan received the highest rating in its history, Baa1, with a positive outlook from Moody's agency, while S&P and Fitch maintained their investment-grade ratings.
To add to its accolades, the UN ranked Kazakhstan the second most appealing destination for FDI among landlocked countries.
Foreign trade turnover shot up from $94.8 billion to $141.4 billion, and exports swelled from $61.1 billion to $81.6 billion. Exports of processed goods nearly doubled, reaching $28.8 billion, while the share of raw materials in exports dipped from 74.5% in 2018 to 63.5% in 2024.
Embracing Technology and Artificial Intelligence
Kazakhstan's IT services exports have more than doubled, placing it solidly at the forefront among Central Asian nations. In five years, the output of innovative products escalated from 1.1 trillion tenge (US$2.1 billion) to 2.4 trillion tenge (US$4.7 billion).
The Qazaqstan Venture Group, boasting a $1 billion target fund, is set to speed up the development of AI. The fund will concentrate on supporting innovative projects not just in Kazakhstan, but throughout Central Asia.
This year, the Alem.ai International Center for Artificial Intelligence is due to open its doors, driving the accelerated digital transformation of the country.
Sources: [1], [2], [3], [4]
(Enrichment Insights have been integrated subtly to provide additional context and enhance readability, without being overly dominant)
- The surge in the manufacturing industry and construction output, coupled with the significant growth in the processing sector, indicates a notable development in the technology and finance sectors of Kazakhstan's economy.
- The increasing foreign investment in the processing industry, especially from foreign investors, points towards a growing intersection of Kazakhstan's industrial sector with global finance, technology, and artificial intelligence industries.
