Kazakhstan's Economy Predicted to Exhibit a 5% Expansion in 2025, According to Experts
The Eurasian Fund for Stabilization and Development (EFSD) and related expert analyses have highlighted long-term growth strategies for Kazakhstan, aimed at shifting away from heavy reliance on extractive industries and achieving sustainable, high-quality economic development.
### Diversification of Economic Sectors
Kazakhstan's economy remains heavily reliant on the extractive sector, particularly mining and hydrocarbons. To reduce this dependence, the EFSD stresses the critical need for diversification, moving toward a broader economic base that is less vulnerable to commodity price fluctuations. This involves attracting significant investment into the private sector, including manufacturing, services, and technology-driven industries.
Three sectors are especially prioritized for strategic investment and development: clean energy, transport and logistics infrastructure, and agriculture. Significant renewable energy potential exists in Kazakhstan, with the government targeting to increase renewables to 15% by 2030 and 50% by 2050 through large-scale investments in wind, solar, hydro, and biomass projects. Modernizing and scaling up agricultural production is seen as a pathway to more inclusive growth and global market integration.
### Strengthening the Private Sector
Experts emphasize the need for comprehensive economic liberalization and regulatory reforms to create a more favorable business climate. This includes reducing red tape, enhancing property rights, and improving legal frameworks to attract both domestic and foreign investment. Fostering small and medium-sized enterprises (SMEs), supporting start-ups, and encouraging digitalization are highlighted as essential for creating jobs and driving innovation.
### Human Capital and Inclusive Growth
Investing in education and vocational training is crucial to equip the workforce for a diversified, technology-driven economy. This supports both industrial modernization and the growth of knowledge-intensive sectors. The diversification agenda is designed to provide broader employment opportunities beyond the extractive industries, reducing regional inequalities and supporting social stability.
### Fiscal and Institutional Reforms
While large-scale public investments are planned, maintaining fiscal discipline and transparency will be key to sustainable growth. Improving governance, enhancing transparency, and combating corruption are seen as foundational to building investor confidence and ensuring that economic gains are widely shared.
In conclusion, Kazakhstan’s long-term growth strategy centers on economic diversification, private sector development, green energy transition, infrastructure modernization, and comprehensive institutional reforms. Success depends on sustained policy implementation, attracting investment beyond extractives, and building a more inclusive, innovation-driven economy.
In line with Kazakhstan's long-term growth strategy, the private sector needs to be strengthened through comprehensive economic liberalization and regulatory reforms, which will help create a more favorable business climate by reducing red tape, enhancing property rights, and improving legal frameworks to encourage both domestic and foreign investment. (Strengthening the Private Sector)
Sustainable high-quality economic development in Kazakhstan requires diversifying the economic sectors, moving away from reliance on extractive industries and attracting significant investment into manufacturing, services, and technology-driven industries, as well as targeted investment in priority sectors such as clean energy, transport and logistics infrastructure, and agriculture. (Diversification of Economic Sectors)
