GDP growth slowed down to 4.7% in Kazakhstan

The growth of the gross domestic product (GDP) in Kazakhstan slowed down to 4.7% over the period from January to September compared to 4.9% from January to August, according to Alibek Kuantyrov, minister of the national economy of Kazakhstan.

«Over the period from January to September of this year, Kazakhstan’s GDP grew by 4.7% including growth in the real sector by 3.7% and 5.1% in the service sector,» he said during a cabinet meeting.

The construction, trade, information and communication sectors reported the highest rates of growth. Over the first nine months of this year, investments into fixed capital grew by 12.1%, including the transport and warehousing industry by 59%, trade by 37.5%, education by 24%, agriculture by 13% and the industrial sector by 8.7%.

Over the period from January to August of 2023 the country’s exports reached $51.2 billion, including export of processed goods at $16.2 billion, while imports were about $39.8 billion. As a result, the positive trade balance amounted to $11.4 billion.

As Prime Minister Alikhan Smailov noted, thanks to measures the cabinet has taken inflation reduced to 11.8% in the first nine months of this year.

«We have 2.5 months in front of us before this year ends. We have to step up the work and take real measures to intensify growth in all spheres of our economy. Every authorized state agency and local executive body has to continue to pursue the goal of stabilizing food prices and stimulating domestic production of food,» he said.

He also noted that the government has to accelerate the implementation of investment projects in non-commodity sectors, including the processing industry, agriculture, transport and logistics, IT, tourism and other industries with the active role of foreign and domestic investors.

According to Azamat Amrin, deputy minister of national economy, Kazakhstan’s GDP grew by 4.9% over the period from January to August. In the real sector, the growth was 4.4% and 4.8% in the service sector over the first eight months of the year. The ministry said that it can see some positive dynamics in all economic sectors. Construction, trade and ICT sectors reported the highest performance rates.

As the official noted, investments into fixed capital grew by 12.2% from January to August, including the transport and warehousing industry (49%), education (31.9%), trade (30.1%), agriculture (20.7%) and industry (8.5%). In terms of regions the Mangistau, Abay, Pavlodar and Turkestan regions have done the best so far.

At the end of August, Minister of National Economy Alibek Kuantyrov presented a forecast for social and economic development for the period from 2024 to 2028. This document predicts the GDP to grow by 5.8% each year. In 2024, the economy is expected to grow by 5.3% and to 6% in 2028. The industrial sector is going to grow by 4% per year on average.

In May, the country’s government predicted GDP growth of 4% this year, 5% in 2024 and 6% in 2028. In turn, the market participants asked by the Association of Financiers of Kazakhstan forecasted GDP growth at 3.9% in 2024. Analytics from Halyk Finance announced that they are expecting the economic growth to reach 4.8% by the end of 2023.