Kazakhstan Economy Recovers From Early 2022 Riots

Kazakhstan’s National Economic Minister Alibek Kuantyrov has revealed the national Q1 2022 main economic growth indicators. These show that in January-March this year the country’s economic growth rates reached 4.4%. Kuantyrov reported on the growth acceleration in the country’s real economy, onward growth in exports, and sustainable growth rates in the service industry. Growth in the real economy reached 5.9%, while business activity increased 2.8%.

Fixed investment grew by 1.5%, while Capital investments, excluding the mining industry, grew by 0.6%. Investments into construction rose by 2.2. times, into education by 2.2 times, public administration, and social services by 78.5%.

The main growth drivers were in Kazakhstan’s Shymkent, one of the countries main economic hubs, Akmola Province, which includes the capital Nur-Sultan, (previously Astana) and the Pavlodar Province to the North-East, near the border with Russia.

In January-February, Kazakhstan’s foreign trade turnover increased by 53% to reach US$18.2 billion. Exports grew by 71.4% to US$12.1 billion, with Kazakhstan’s processed goods exports rising by 47% to hit US$3.5 billion.

The figures are inflated partially by a huge effort in repaired damaged infrastructure caused by the early January 2022 social unrest, however political reforms made since then appear to have calmed the country down and put it back on the path to normal trade stability. The economy is also benefitting from a sudden influx of Russian investment and money coming into the economy with capital relocating from Russia due to the Ukraine conflict.

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