Kazakhstan’s Investment Growth Slows as Base Effect Fades and Private Sector Weakens
Investment activity in Kazakhstan decelerated in January–September, with fixed capital investment rising 13.5% year-on-year, down from 19.3% at the end of June. The slowdown reflects the dissipation of the low-base effect from last year and a decline in transfers from the National Fund, according to a Nov. 5 Halyk Research report.
Growth was primarily supported by education, transport and logistics, and manufacturing, driven by public spending and infrastructure projects. In contrast, the mining sector contracted 16.9% year-on-year following the completion of large-scale developments, including the Tengiz expansion project.
The state’s role in investment continued to grow, with the share of budget financing rising to 23% from 19% a year earlier. Meanwhile, enterprise funds fell to 63% from 66.6%, and the share of bank lending dropped to 3.7%.
Analysts warn that for long-term sustainable growth, Kazakhstan must attract more private investment, reduce state dominance, and prioritize technological modernization, innovation, and education.
Photo credit: Shutterstock
