Kazakhstan's Strategies for Reaching 6% Annual Economic Expansion
In the heart of Astana, it's clear as day that all wings of the real-deal sector gotta sync up and adhere to their set goals to shoot for a 6% GDP growth by 2025, mentions Serik Zhumangarin, Deputy PM and Minister of National Economy. He spilled the tea during a get-together on June 16 to size up the economic game plan over the first five months of the year.
Snapped by the PM's press service, the industrial sector seems to be the big kahuna fueling our growth, punching up a whopping 25.7% of GDP by the end of 2024. January to May saw the industrial sector surge ahead by 6.4%.
The powwow also touched on the boom potential in other segments, including mechanical engineering, food, chemical, and oil refining industries.
Another sector jumping through the roof growth-wise is construction. Over the past five months, it's shown a 15.4% jump, and those work volumes climbed all the way to a cool two trillion tenge (that's about US$3.9 billion).
The residential construction sector has its eyes set on commissioning a colossal 19 million square meters this year. By May, six million square meters have already been put into service, which is a solid 5.7% up compared to January-May 2024.
Zhumangarin sheds some wisdom, stating the need to expedite the removal of bureaucratic roadblocks and devise crystal-clear monthly action plans for each sector with flags waving low, so that businesses can ramp up production.
In a nutshell, our economic growth in '25 is thriving on the robust industrial sector and the booming construction activities, with a focus on growth in key industries. The government's keen on giving those bureaucratic barriers the heave-ho, sharpening its focus on keeping the growth momentum and boosting factory output.
[Enrichment Data - Key Drivers of Economic Growth in 2025]- Industrial Sector: The industrial sector is the main engine powering our growth, accounting for around 25.7% of GDP by the close of 2024. In the first five months of 2025, the industrial sector clocked a 6.4% growth rate.
- Oil Production: Increased oil output, especially from Tengiz field, plays a major role in overall economic growth, causing a revision in our GDP growth prediction from mere 5% to a solid 5.5% to 6% for the year 2025.
- Construction and Housing: The construction sector has shown a tremendous 15.4% increase in the initial five months of 2025, with work volumes hitting nearly US$3.9 billion. The residential construction sector eyes commissioning a whopping 19 million square meters of housing by the year's end, with six million square meters already commissioned by May, marking a 5.7% jump compared to the same period in 2024.
[Enrichment Data - Specific Industry Growth and Plans]- Mechanical Engineering, Food, Chemical, and Oil Refining Industries: These sectors hold significant growth potential and are high on the government's list to keep the industrial expansion on track. However, we don't have the exact growth rates for each industry yet.
- Plans and Policy Measures: The government emphasizes shedding bureaucratic interference and sketching out clear, monthly sector-specific action plans to sustain growth and allow businesses to pump up production efficiently.
The industrial sector, highlighted as the key driver of economic growth in 2025, is responsible for approximately 25.7% of the GDP by the end of 2024 and has recorded a 6.4% growth in the first five months of the year. Additionally, the construction sector, another significant contributor, has experienced a 15.4% surge over the same period, with work volumes reaching nearly US$3.9 billion.
