The current review presents evidence indicating that Kazakhstan's economy experienced significant growth in the real sector during January–February 2025, most notably in the manufacturing and mining industries. In particular, oil production increased, which was supported by the test launch of the third generation plant at the Tengiz field. However, despite the growth in oil production, export of fuel and energy products decreased by 18.5% (YoY), which led to a 47% decrease in tax revenues to the National Fund. As a result, the republican budget received only KZT1 trillion in transfers instead of the planned KZT1.75 trillion, which caused low budget execution.
Investment activity continues to stagnate, with a noticeable shift from privately funded investments to those financed by the state budget. In the context of global trade changes caused by the introduction of new US tariffs, Kazakhstan faces additional economic challenges.
Read more in the Fiscal Policy and Socio-Economic Development Review.
