Service sector drives Kazakhstani GDP

Senior business correspondent
Kazakhstan’s GDP grew by 5.6% in January 2023 / Shutterstock

In January 2023, Kazakhstan’s economy grew by 5.6%, according to Timur Zhaksylykov, first vice minister of the national economy. While reporting to the cabinet, he also noted that the service sector grew by

7.6% while the real economy grew by 2.3%.

«Although all key industries have shown growth, the trade industry, information and communication, and the construction sector were among the leaders,» the official said.

Capital investments also grew by 18.3% during the reporting period.

The processing, car and computer industries have risen by 12.2%, 27.5% and 29.6% respectively.

In January 2023, food manufacturing in Kazakhstan rose by 9.8%, oil refinery by 11.1%, chemical production by 10.6%, textile industry by 11.3% and pharmaceutical industry by 51%.

The mining industry increased its output by 1.2%, a great result given the industry hadn’t grown over the previous four months in a row. Coal production grew by 7.6%, while metal ore, oil and gas production rose by 3.7%, 1% and 0.1%, respectively.

The January 2022 riot caused Kazakhstan’s service sector to plunge. According to official statistics, retail trade dropped that month by 15.9% while industrial production declined by just 2.9% compared to the same period in 2021.

In 2022, the country’s GDP grew by 3.1%, including growth in the non-financial sector (3.2%) and service sector (2.5%). On the other hand, Kazakhstan reported 20.3% inflation last year. Food prices grew by 25.3%, non-food products by 19.4% and paid services by 14.1%.

The Eurasian Development Bank said that Kazakhstan’s GDP is going to rise by 4.2% this year. The Asian Development Bank is less optimistic and says that the country’s economy will grow by 3.7%  in 2023. The World Bank assessment is a 3.5% increase this year and 4% in 2024.

Read also