Six-year GDP per capita surpassing the $14,000 threshold
Kazakhstan has made significant strides in its economic development over the past six years, propelling the Central Asian nation closer to joining the group of high-income countries. According to Prime Minister Olzhas Bektenov, the country's GDP per capita exceeded $14,000 by the end of 2024, with Kazakhstan's GDP standing at $288 billion.
The economic growth in Kazakhstan is being driven by the non-resource sectors, particularly the processing industry and construction. Between 2019 and 2024, the output of the processing industry grew by 31.4%, while the construction sector experienced a staggering growth of 96.3%. Processing enterprises now hold a significant share in the industrial structure of Kazakhstan, matching that of extractive industries.
This transformative growth can be attributed to several key factors. Kazakhstan has been actively expanding its mining sector, becoming the world's largest uranium producer in 2024, accounting for 38% of global supply. Mining activities contribute significantly by supplying essential minerals not only for traditional energy but also for renewable energy technologies, boosting industrial and infrastructural development.
In addition, rising investment has positively impacted real wages and productivity, supporting economic diversification and growth in sectors beyond oil. Investment surges, similar to those observed in the Asia-Pacific region, have historically correlated with real wage growth, fostering broader economic expansion.
The Kazakhstani government has also implemented policies to reduce its reliance on oil, encouraging growth in manufacturing, agriculture, and services. These sectors' contributions have been supported by increased investment, infrastructure developments, and efforts to stabilize inflation and economic conditions to favor diversified economic activities.
Maintaining inflation rates at manageable levels supports consumer spending and investment in the non-oil economy. Although inflation has fluctuated, Kazakhstan's authorities have worked to keep it under control to sustain economic growth.
The economic development in Kazakhstan, despite challenges such as the COVID-19 pandemic and global geopolitical tensions, has shown resilience and progress. The article highlights significant strides made by Kazakhstan in economic development despite numerous challenges.
The Head of State, President Kassym-Jomart Tokayev, has prioritised economic diversification, with a specific focus on the development of the non-resource sectors. This strategic approach has positioned Kazakhstan for long-term sustainable growth and development, setting the stage for continued progress in the years to come.
- The government's strategic focus on the development of non-resource sectors, such as finance, has been instrumental in Kazakhstan's long-term sustainable growth, boosting sectors beyond traditional oil and strengthening the industrial structure.
- With rising investment and a growing share in the industrial structure, processing enterprises in Kazakhstan's finance sector have played a significant role in the country's transformative growth, driving economic diversification and supporting real wage increases.
