Kazakhstan reports economic growth driven by non-commodity sectors

According to Minister of National Economy Nurlan Baibazarov, Kazakhstan’s economy grew by 4% between January and September 2024, while the country’s GDP has reached 3.2%. The minister revealed these figures during a cabinet meeting

«Thanks to the measures undertaken, we may see that economic growth has been accelerating for the third consecutive month. Growth in the real sector reached 5%, while the service industry grew by 3.8%,» the report stated.

Baibazarov highlighted that this year’s economic growth is entirely driven by the non-resource-based sector, with agriculture and construction showing the most significant growth.

Service sector figures showed strong growth, with transportation increasing by 8%, telecommunications by 6.4% and trade by 6.3%. Meanwhile, the processing industry grew by 4.8%.

«Sixty-five percent of GDP growth is driven by the processing, construction and agriculture industries,» Baibazarov said.

Investments in capital assets increased by 0.6% over the past nine months, with the most significant growth occurring in non-resource sectors. Investments in communications rose by 81.7%, in education by 79.3% and in the sphere of transportation by 31.1%. Additionally, investments in the processing industry grew by 6.3%, while those in healthcare increased by 4.8%.

The Almaty, Pavlodar, Kyzylorda, Turkestan and Jetisu regions reported the highest levels of investments. In contrast, significant declines in investments were observed in the Atyrau, Akmola, Aktobe and Mangystau regions.

«Trade, construction, transportation and processing industries are the reserved instruments to ensure planned economic advance in 2024,» the report said.

In mid-August, the government projected that Kazakhstan’s economy would grow by 5.6% in 2025, while inflation was expected to fall within a range of 5.5% to 7.5%.

In early October, the International Monetary Fund (IMF) projected GDP growth of 3.9% for 2024, down from 5.1% in 2023.