Kazakhstan's economy expanded by a robust 6% between January and May of the year 2025.
Buckle Up, Kazakhstan's Economy Booms!
In a staggering triumph, the Kazakhstan economy soared 6% in the first five months of 2025 compared to the previous year. This impressive surge was fueled by a dynamic mix of sectors, from industry and construction to trade, transport, and communications.
Industrial production lit the fireworks, with an impressive 6.4% increase. Seventeen regions across the country contributed to this boom, with the Zhambyl region taking the lead with a whopping 22.9% increase, thanks to active mining, fertilizer, cement, and sugar production. The Turkestan and Jetisu regions followed closely behind with 14.8% growth, while Almaty city and Shymkent saw 14.1% and 18.9% growth, respectively.
The agriculture sector also saw a 4.0% increase, marking a 0.1% rise from January-April. The Atyrau region led the charge with a 10.4% hike, followed by the North Kazakhstan (+7.5%) and Akmolinsk (+6.5%) regions. The primary drivers behind this growth were increased livestock and poultry slaughter.
Meanwhile, the construction industry shows no signs of slowing down, with volumes surging by 15.4%. The Mangystau region doubled its work volumes, owing to large-scale projects such as schools, desalination plants, and pipeline and water pipeline reconstruction. The Kyzylorda region grew by 64.5%, the Kostanay region by 57.8%, Astana by 51.8%, and the Turkestan region by a substantial 46.6%.
Residential construction is picking up steam, commissioning over 6 million square meters of housing since the beginning of the year, a 5.7% increase from last year. The most active construction can be found in the Turkestan region (+25.5%), Shymkent (+23.4%), and the Almaty region (+20.4%).
Investments in fixed capital grew by 18.2%, fueled by investments in transport, production, social, and digital infrastructure.
Trade also saw a 7.8% increase, with wholesale trade leading the charge at an 8.3% increase. The transport sector showed an impressive 23.1% increase, primarily driven by growth in freight railway and pipeline transport.
While Kazakhstan's economy is on a roll, challenges remain. Underlying factors such as inflation pressures, moderating oil prices, and global economic uncertainties necessitate continued investment, structural reforms, and diversification to sustain and expand growth.
Now, let's delve a bit deeper into this economic phenomenon. Key factors driving growth across critical sectors in 2025 include:
- Oil production: Increased output has been a major driver, supporting overall GDP growth despite moderating global oil prices. Government investments in modernizing this sector bode well for future gains.
- Manufacturing and metallurgy: Alongside oil, manufacturing and metallurgy have contributed to industrial sector growth, benefiting from both domestic demand and export opportunities.
- Construction: Large-scale infrastructure projects, continued demand for residential and commercial real estate, and ongoing investments in transport and urban development are fueling growth in this sector.
- Agriculture: Though specific data for early 2025 is limited, government efforts to modernize and diversify agriculture aim to improve productivity and resilience, creating opportunities for export growth.
- Investments: Focused investments in transport, logistics, communication, metallurgy, and digital infrastructure are expected to unlock new growth avenues and improve connectivity within the country and beyond.
- Trade: Despite slower growth in key trading partners and lower oil prices, Kazakhstan continues to capitalize on export-oriented sectors, including oil, metals, and agricultural products. The government also acknowledges the importance of diversifying trade beyond traditional commodities.
- Digitalization: Substantial investments are being poured into digitalization, artificial intelligence, and ICT infrastructure. This sector is increasingly critical for productivity gains and economic modernization.
- Transport: Ongoing projects in rail, road, and port infrastructure are expected to boost the transport sector’s contribution to GDP, enhancing connectivity within the country and with international markets.
Despite robust growth in many sectors, Kazakhstan faces several challenges that necessitate continued investment, structural reforms, and diversification to sustain and expand growth. The International Monetary Fund and the government are focused on maintaining the economic momentum by addressing these challenges head-on.
[1] Enrichment Data - Overall[2] Enrichment Data - Industry and Sectors[3] Enrichment Data - Industry and Sectors[4] Enrichment Data - Challenges and Outlook[5] Enrichment Data - Challenges and Outlook
The rapid growth in the industry sector, particularly oil production and manufacturing, contributed significantly to Kazakhstan's booming economy in 2025, with the former driving overall GDP growth despite moderating global oil prices.
Investments in strategic sectors such as transport, logistics, communication, metallurgy, and digital infrastructure are crucial for unlocking new growth avenues and improving connectivity within the country and beyond.
