2024 was a year of economic development for Kazakhstan, an issue that the country’s President, Kassym-Jomart Tokayev, had prioritized for several years. This effort culminated in his September Address to the people of Kazakhstan, titled “Just Kazakhstan: Law and Order, Economic Growth, Social Optimism,” where he outlined key priorities for the country’s economic development in the near future. The government actively worked on implementing these tasks throughout the year.
Notable results have been achieved. Kazakhstan’s economy grew by 4.4% in 2024, driven by strategic measures to diversify the economy, attract investments, and bolster domestic businesses. Government initiatives focused on expanding the non-oil sector, fostering a favorable investment climate, and supporting small and medium-sized enterprises (SMEs).
Measures to support domestic producers increased the share of small and medium-sized businesses in Kazakhstan’s economy by 1.8%, bringing it to 38.2%. The number of active SMEs has now surpassed two million, employing over 4.2 million people. SME output increased by 19.1% in the second quarter, reaching $65 billion.
Support programs, such as the comprehensive business development program, provided subsidies, guarantees, and grants for SMEs. Syndicated lending and new bond loan conditions further enhanced financing opportunities, fostering a competitive business environment.
Liberalizing the Economy
Since the country’s independence in 1991, Kazakhstan has been transitioning to a market economy. Yet, this process has not always been smooth sailing, with the state still actively involved in many enterprises. However, at the expanded Government meeting held on February 7, President Tokayev outlined several tasks to ensure the freedom of entrepreneurship by promoting competition, reducing state participation in the economy, and lowering business costs. On May 10, Kassym-Jomart Tokayev signed a decree titled “On Measures for the Liberalization of the Economy.”
As a result, in the first half of 2024, the gross inflow of foreign direct investment (FDI) amounted to $9.8 billion. The largest volumes of FDI were recorded in the mining industry, wholesale and retail trade, and manufacturing.
From January to November 2024, the volume of investments in fixed capital reached approximately $30.56 billion. To date, 134 projects have been launched, totaling approximately $1.54 billion and creating 10,100 permanent workplaces.
Economic Impact of Floods
Kazakhstan’s economy expanded despite significant hurdles in 2024. The country experienced massive spring floods, which caused considerable damage to its infrastructure and population. A state of emergency was declared at the local level in 10 regions. The government reacted promptly to this situation, evacuating people to safe locations and ensuring they received necessary assistance.
The state ensured to fulfill all its obligations, and all affected individuals received material and financial assistance.
To provide housing for affected citizens, 5,767 residential homes were purchased on the real estate market. Repair work was fully completed on 9,156 houses. A total of approximately $105.78 million was allocated to address this issue. Additionally, 2,680 private houses were constructed in a short period at a cost of approximately $123.76 million. Moreover, 36,455 families received one-time social aid amounting to 100 MCI (Monthly Calculated Index), totaling approximately $25.71 million. Another 21,876 families were compensated up to 150 MCI, totaling approximately $19.14 million.
To support businesses affected by the floods, $23.2 million was allocated.
Enhancing Living Standards
Economic growth has positively impacted the overall living standards and development of the country. For instance, as part of the national project “Comfortable School,” 217 schools are being built, providing 460,000 new student places in cities and rapidly growing settlements. To date, 36 schools have been commissioned, accommodating approximately 43,000 students. Fifteen of these educational institutions are located in rural areas.
Furthermore, the national project “Modernization of Rural Healthcare” has been ongoing for several years. To date, 276 primary healthcare facilities have been built – 99 completed in 2023 and 177 in 2024. In 2025, 125 additional facilities are planned. Additionally, the modernization of 32 district hospitals is underway.
Developing the Agro-Industrial Sector
One area where Kazakhstan excels is in the agro-industrial sector. As one of the world’s top ten grain exporters, it supplies grain to regions like Central Asia, the Middle East, and parts of Africa. Combining traditional agriculture with innovative digital solutions, Kazakhstan is boosting efficiency, productivity, and sustainability. In 2024, the country harvested a record 26.7 million tons of grain, marking a decade-high and contributing to a 12.7% growth in its agricultural sector. Crop production rose by 18.8%, supported by increased investments, while livestock production saw steady gains in meat, milk, and egg outputs.
Despite the spring floods, a record harvest of 26.7 million tons of grain was collected this year. This success is the result of systematic government support for farmers. Preferential loans for spring field and harvest work were issued at a 5% interest rate, with over $966.61 million allocated for this purpose for the first time.
Reducing import dependence on essential food products remains a key priority for the government. Several projects have been implemented in this direction. A comprehensive plan for the development of breeding and seed production has been adopted, focusing on providing farmers with domestically produced seeds.
Additionally, approximately $231.95 million has been allocated to renew 8–10% of the agricultural machinery fleet annually. A program offering preferential leasing of domestically produced agricultural machinery at a 5% annual interest rate has been launched.
To store and deliver food products to consumers, new warehouse and logistics complexes are needed. Over the coming years, storage facilities with a capacity of 700,000 tons will be constructed.
This year, Kazakhstan hosted its first forum for agricultural workers, where key development tasks for the sector were outlined. It was also announced that a special law aimed at preserving and increasing the population of Kazakh horse breeds has been passed.
Ultimately, given Kazakhstan’s economic growth and the implementation of government programs, the country is moving in the right direction and is likely to attract the interest of international stakeholders, including investors. The achievements of 2024 underscore the successful implementation of President Tokayev’s program. Kazakhstan has built a strong foundation for 2025.