Kazakhstan’s government expects economic growth at 5% this year

The government expects that the national economy will grow by 5% this year / Photo: Shutterstock

According to National Economy Minister Alibek Kuantyrov, Kazakhstan’s GDP will grow by 5% this year. The official made this statement during a meeting with President Kassym-Jomart Tokayev in Astana.

«The minister reported to the president that the national GDP is expected to grow by 5% at the end of 2023. Over the first six months of this year, the amount of foreign direct investments reached $13.3 billion,» the ministry said in a statement.

Annual inflation lowered more than two times from 21.8% in February to 10.8% in October. At the same time, the share of small and medium-sized businesses with more than 4.3 million people involved in these sectors reached 36.4%, a record high. (Five years ago, the rate was 31.7%.) In 2023, the government subsidized 9,000 projects while the total sum of loans reached $1.4 billion.

Kuantyrov also reported to the president about the implementation of the Tariff in Exchange of Investments program. This year, the government plans to raise $574 million, repair 5,800 kilometers of the network, reduce deterioration of the network by 3.2% and raise salaries in the utilities sector by 50%. The minister also shared with Tokayev an update on the new budget and tax codes, which are currently being prepared.

However, analysts of Halyk Finance are less positive when it comes to the country’s GDP growth and expect it at 4.8%. Over the period from January to September, the growth of Kazakhstan’s economy dropped to 4.7% compared to 4.9% in the period from January to August.

In late August, Kuantyrov presented an official forecast for the socio-economic development of Kazakhstan in 2024-2028 with an expected GDP growth of 5.8% on average. In 2024, this rate is expected at 5.3% and at 6% by 2028. The industrial sector is expected to grow at a slightly slower pace of 4%.

In the government’s forecast of socio-economic development published in May, the national GDP was expected to grow by 4% this year, 5% in 2024 and 6% in 2028. In turn, participants of the financial market interviewed by the Association of Financiers of Kazakhstan predicted GDP growth of 3.9% in 2024. Analysts of Halyk Finance expect this rate at 4.8% at the end of 2023.