In the first half of 2024 Kazakhstan demonstrates an apparent stability in investment activity with a 0.4% increase compared to last year, reaching a mark of 8,284.9 billion tenge.
However, behind this disguised stability, significant fluctuations are hidden, which could determine the country’s economic fate in the coming years.
Inequality Regionwise: Drivers and Brakes of the Economy
A significant increase in investments was recorded in Zhetisu, by 51.7%, making it an attractive region for capital investments. Similar trends are also observed in the Kyzylorda and Pavlodar regions, with increases of 41% and 30.1% respectively. These regions demonstrate potential to become new centers of industrial and technological development.
However, there are regions with sharp declines in investments, particularly in Atyrau region, where investments decreased by 31.9%. This indicates serious economic problems that could worsen without active state support and private investment.
Sectoral Perspectives: Where are Investment Flows Heading?
The industrial sector remains dominant in the investment capital structure, accounting for 40.8% of the total volume. The mining industry is particularly active, accounting for 22.3%, which may indicate a renaissance of traditional sectors of the economy.
At the same time, the construction and wholesale trade sectors show a decline in investment activity. This could be a precursor to a slowdown in economic activity in these areas.
Main Sources of Financing: What are the Trends?
The majority of investments (68.5%) are financed through the enterprises’ own funds, demonstrating the financial resilience of Kazakhstani companies. Meanwhile, the share of government budget in financing investments is also significant, at 17.6%, underscoring active state participation in economic development.
