Kazakhstan’s Industry Grows by 6.4% in First Five Months of 2025
Kazakhstan’s industrial output grew by 6.4% year-on-year in January–May 2025, supported by robust performance in the mining and manufacturing sectors, according to an analytical report released by Halyk Finance on June 26.
The mining sector, which accounts for approximately 12% of Kazakhstan’s gross domestic product (GDP), recorded a 7.8% increase. The rise was primarily attributed to higher oil production at the Tengiz field, which also stimulated growth in the production of diesel fuel, natural gas, fuel oil, and petroleum coke. This expansion further boosted wholesale trade and transport activity, positioning oil as a key factor in accelerating economic growth during the reporting period.
Crude oil output rose by 10.2%, coal production by 11.3%, and metal ore extraction by 0.8%. Mining accounted for 45.5% of total industrial production during this period. However, the pace of growth is expected to moderate in the coming months as the Tengiz expansion project concludes and oil prices potentially decline amid easing geopolitical tensions in the Middle East.
The manufacturing sector, which contributes 11.9% to GDP, expanded by 6% year-on-year. Key contributors to this growth included food production and mechanical engineering, both up by 10.5%, as well as ferrous metallurgy, which grew by 3.4%. This momentum was slightly constrained by a 2.1% decline in the production of basic precious and non-ferrous metals.
The energy sector posted marginal growth of 0.1%, a significant deceleration compared to the previous year, due to reduced revenues from electricity transmission and distribution services. This occurred despite a 2.9% increase in physical electricity output. The water supply and waste management sector continued to underperform, declining by 6.2% year-on-year, mainly due to reductions in water treatment and waste collection volumes.
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