Kazakhstan: Economy gathers momentum in Q2
Economic growth accelerated to 4.1% in annual terms in January–June, up from the 3.8% year-on-year expansion recorded in January–March, according to a first estimate released on 3 October.
A breakdown of key sectors revealed that booming activity in the construction sector (January–June: +11.1% year-on-year; January–March: +8.9% yoy), coupled with upbeat output growth in the service sector (January–June: +4.4% yoy; January–March: +3.7%), drove the overall acceleration. In contrast, industrial sector activity lost stride (January–June: +2.6% yoy; January–March: +3.2% yoy), amid overhauls in the country’s main oil rigs, while growth in agriculture output dipped slightly (January–June: +3.4% yoy; January–March: +3.6% yoy).
Economic activity is seen losing traction this year as maintenance at the country’s three main oil fields weigh on oil output and heightened trade tensions restrain exports. In 2020, the economy is expected to expand steadily as planned government reforms, which include income tax breaks, shore up fixed investment and keep private consumption expanding at a healthy stride.