Kazakhstan's economy grows 4.1% in 1H26

Kazakhstan's economy has experienced a growth of 4.1% in the first half of 2026, as reported to President Kassym-Jomart Tokayev during a meeting with Prime Minister Olzhas Bektenov. The government highlighted robust investment, a rise in industrial production, and the initiation of significant infrastructure projects, according to Akorda.

The government noted that manufacturing output surged by 9.8% in the first six months, with transport increasing by 7.1%, construction by 15.2%, trade by 5.7%, agriculture by 4.4%, and communications services by 4.3%.

Investment in fixed capital reached KZT 9.5 trillion ($17.4 billion), with private investment seeing a notable rise of 21.4%. Bektenov announced that the government plans to launch 200 industrial investment projects this year, valued at KZT 1.7 trillion ($3.1 billion), which is expected to generate around 17,000 jobs.

The Prime Minister also provided updates on significant transport infrastructure projects, including major highway developments, the construction of a second airport in Astana, and the next phase of the Tarlan Astana transport system.

Housing commissioning is anticipated to hit 20 million square meters this year, while agricultural output is projected to reach KZT 15 trillion ($27.5 billion), supported by an increase in cultivated land to 23.8 million hectares. The government has allocated KZT 1 trillion ($1.8 billion) to assist farmers, with each tenge from the budget expected to draw in 6.5 tenge in private investment.

As of June, annual inflation was recorded at 10.3%, and the government indicated that optimizing certain social payments could save over KZT 800 billion ($1.5 billion) annually.

The meeting also addressed preparations for the upcoming heating season. Five thermal power plants have been removed from the critical risk category since last winter, while three others have been classified as low-risk. This year, Kazakhstan aims to reconstruct nine power units, 55 boilers, and 51 turbines, supported by KZT 384 billion ($705 million) in funding. By year-end, repairs to 12,000 kilometers of utility networks are expected to be completed under the National Project for Modernization of the Energy and Utility Sectors.

Bektenov also informed the president about digital transformation efforts, including the Data Center Valley project, which, in collaboration with leading global technology firms, will create 250 megawatts of data center capacity and has attracted over $10 billion in foreign investment.

Tourism infrastructure was another key topic of discussion. Authorities anticipate that the development of the Almaty mountain cluster will enhance tourism's contribution to GDP. The Almaty SuperSki project is currently under construction, featuring 60 kilometers of ski slopes and a daily capacity for 10,000 visitors, with an opening scheduled for December 2028.

Following the meeting, Tokayev directed the government to persist in implementing policies aimed at economic diversification and initiated a large-scale program to construct social and infrastructure facilities across the country, with a particular focus on modern healthcare infrastructure. Previously, President Tokayev had instructed the government to boost Kazakhstan's agricultural exports to $7.2 billion this year while enhancing food production and accelerating investments in livestock, veterinary services, and digital agriculture.