Kazakh Economy Grows 3% in Q1 2026, Driven by Non-Oil Sectors

Kazakhstan's economy expanded by 3% in real terms during the first quarter of 2026, according to a government report. First Vice Minister of National Economy Azamat Amrin highlighted that this growth was achieved without the contribution of the oil sector.

The increase was driven by robust performance in construction, transport, and manufacturing. The real sector grew by 2.1%, while the services sector saw a more significant rise of 3.7%.

Investment in fixed capital surged by 6.4%, reaching 3.5 trillion tenge. Private investment showed particularly strong momentum, increasing by 20.9%. Significant capital inflows were recorded in electricity and gas supply (up 2.5 times), information and communications (up 2 times), and agriculture (+70.6%). The Zhambyl, Turkestan, Almaty, Ulytau, and East Kazakhstan regions reported high investment growth.

Foreign trade turnover for January-February reached $21.7 billion. Exports totaled $12 billion, including $4.5 billion worth of processed goods, while imports stood at $9.6 billion, resulting in a trade surplus exceeding $2.4 billion.

The manufacturing industry accelerated its growth to 8.5%, with positive dynamics observed in 18 regions. Amrin noted a qualitative shift in the economic structure: for the second consecutive year, the share of manufacturing (12.7%) has surpassed that of mining.

The share of the oil sector in GDP has more than halved since 2010, dropping from 16.5% to 8.1% in 2024.

"To ensure sustainable development, it is important to continue focusing on further diversification of the economy," Amrin stated.

Within manufacturing, growth was led by mechanical engineering (+21.9%), pharmaceuticals (+46%), production of metal products (+39.3%), and construction materials (+37.1%).

The construction sector grew by 14.8%, with 3.9 million square meters of housing commissioned during the period.