Over the past two decades, Central Asia has experienced steady and often impressive economic growth. According to experts, Central Asian countries have consistently outpaced both global and developing country growth averages. In 2024, the combined GDP of Central Asian countries surpassed $500 billion, while foreign trade turnover increased nearly nine-fold since 2000 and foreign direct investment rose by a factor of 17. Yet as many experts emphasize, sustaining this momentum will require the region – Kazakhstan, in particular – to adapt to evolving global economic realities.
Kazakhstan’s economic growth has long relied on its oil, gas, and mineral exports, which have funded infrastructure, social programs, and public services. This resource dependence, however, leaves the economy vulnerable to volatile commodity prices and geopolitical shocks, such as sanctions on neighboring countries or supply chain disruptions following Russia’s invasion of Ukraine.
These sectors are also capital-intensive but generate limited employment, making them ill-suited to meet the needs of a growing, urbanizing population. For more inclusive and resilient growth, Kazakhstan must diversify into job-rich, innovation-driven sectors like manufacturing, logistics, agriculture, and clean energy.
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