Kazakhstan: GDP growth gathers steam in H1
According to a preliminary reading, GDP growth gathered steam to 5.1% year on year in H1 (January–June 2023), up from 5.0% in the first quarter.
All sectors of the economy exhibited growth in H1, except for arts and recreation. One of the primary drivers of faster growth in H1 compared to Q1 was an acceleration in the mining sector. On the other hand, growth rates in the services and retail trade sectors slowed slightly in comparison to the first quarter.
Economic momentum should carry on into the rest of 2023, primarily driven by an uptick in fixed investment and moderating inflation bolstering private consumption. Meanwhile, the initiation of monetary loosening should boost the economy further, albeit only moderately, given the weak monetary policy transmission mechanism.