It is obvious that the incumbent President Kassym-Jomart Tokayev has successfully transformed macro-economy, revolutionized social development, further strengthened manufacturing capacity, consolidated industrial growth, harmonized political stability and last but not least, diversified foreign policy through initiating holistic and comprehensive structural reforms in every sector since 2019. Resultantly, Kazakhstan still maintains its status of biggest economy, largest manufacturing entity and social development of Central Asia and beyond.
Thus, the achievements of the desired goals of socio-economic prosperity, economic diversity, exports orientation, green transformation and above all giant leap towards digitalization and artificial intelligence vividly reflecting and endorsing the superior economic wisdom of the President Tokayev institutionalizing a sustainable development model gearing the country, community and enterprises towards greater progress, prosperity and productivity.
Additionally, President Tokayev’s constant and continued economic structural reforms transformed the country aiming to reduce reliance on raw materials, increase digitalization, and shift towards a more diversified and market-driven economy. Hence Kazak’s economy is gaining momentum towards greater economic stability and sustainability, achieving new targets of the GDP, GNP, FDIs, and industrial growth becoming the leader and economic powerhouse of the entire region.
It is pertinent to mention that according to IMF data, Kazakhstan has already entered into the top 50 largest economies in the world, as well as the top five countries in terms of average annual economic growth rates clearly demonstrating effectiveness of the President Tokayev’s economic reforms, meaningful industrial policies and people, business and investment’s friendly policies.
Moreover, Kazakhstan ranked 34th in the World Competitiveness Ranking confirming the strengthening of the country’s investment and business attractiveness.
Furthermore, the comparative studies and critical analysis of its macro-economy indicates that despite weak global economic growth/rate and regional geopolitics, Kazakhstan GDP increased by 6.5 percent showing the paradigm shift in its economic structure.
Previously, its GDP dynamics were largely determined by external commodity market conditions, but now, with the notable long term economic policies, balanced monetary and fiscal mechanism and innovative industrial growth initiated by the Head of State, growth is increasingly driven by non-resource sectors and domestic demand.
Interestingly, manufacturing, construction, trade, transport, and the services sector remained strong, stable and sustainable due to which its nominal GDP over seven years increased by 1.7 times: from US$181.7 billion in 2019 to US$305.9 billion in 2025. GDP per capita is also steadily growing from US$9.8 thousand in 2019 to US$15 thousand by the end of 2025.
Evidently, the investment policy of President Tokayev has become one of the key factors of rapid economic transformation. Over seven years, the volume of investment in fixed capital increased from 12.6 trillion tenge to 22.7 trillion tenge.
On the other hand, the increase in the manufacturing sector over seven years increased by more than 2.5 times from 11.5 trillion tenge in 2019 to 30.63 trillion tenge in 2025 indicating President Tokayev’s applied economic approach gearing the country towards greater prosperity and economic self-reliance. The share of manufacturing in GDP increased from 11.4 percent to 12.7 percent while the share of the extractive sector decreased from 14.5 percent to 12 percent.
Remarkably, since 2019 its GDP has increased by 16 percent, reaching 137 trillion tenge (US$255.2 billion). GDP per capita developed by 47 percent to $14,400. National reserves total US$58 billion, and foreign trade turnover stands at US$142 billion, growing by 83 percent over the past seven years showcasing the real essence of President Tokayev’s economic policies transforming its state, society, system and services sector towards further modernization, digitalization and AI.
Resultantly, Kazakhstan’s GDP has surpassed US$300 billion, with per capita income reaching US$15,000. Moreover, its National Fund’s reserves now stand at US$65 billion, including more than US$35 billion in gold and foreign currency reserves confirming its financial stability & sustainability.
The launch of Dostyk-Moiynty railway line, construction of 13,000 kilometers of roads, and opening of the 36 new air routes has further strengthened Kazakhstan’s position as a Eurasian transport hub.
Amazingly, Manufacturing output grew by 7.5 percent. Small and medium-sized enterprises now contribute 40 percent of GDP and employ half of the workforce. Construction reached a record 19 million square meters of new housing.
Agricultural output increased 2.5 times, with grain harvests exceeding 20 million tons all indicating overall and balanced economic growth supporting a new sustainable economic development model of President Tokayev.
Tokayev has reaffirmed Kazakhstan’s commitment to social development. Under the National Fund for Children program, state investments in education tripled and teachers’ salaries doubled. More than 1,200 new schools were built validating the immense pace of its social development transforming lives of common people and communities alike in the country.
Interestingly, funding for science increased fivefold, and 33 branches of foreign universities opened in Kazakhstan projecting qualitative HR policies of the President Tokayev. On the other hand, tripling of the healthcare funding, building and renovation of 927 facilities and exceeding of life expectancy up to 75 years verifies the head of the state’s holistic policies towards the betterment of the common people.
To conclude, the country wide approval of the new constitution in national referendum is the result of President Tokayev’s integrated, effective, innovative and futuristic socio-economic policies to achieve a new economic model which is progressive, productive, participatory, diversified, stable and sustainable.
It seems that the President’s Tokayev’s persistent support and policy of overlooking industrial development is now paying its numerous dividends boosting production volumes, improving labor conditions and launching high-value-added manufacturing facilities in the country.
It appears that attracting more and more inflows of the FDIs from the including from leading international companies, creation of sustainable jobs and strengthening of Kazakhstan’s position as a competitive player in the global industrial landscape has successfully changed economic potential, productivity and outlook of the country.
According to official figures of Kazakhstan, by the end of 2025, manufacturing accounted for 12.7 percent of Kazakhstan’s GDP, while total output in the sector increased by 6.4 per cent year-on-year highlighting the strengthening of its industrial policies shifting from quantity to quality phase.
So, growth was witnessed across most major industries. Engineering production increased by 12.9 per cent, supported by increased output of vehicles, agricultural machinery, electrical equipment and electronic devices.
On the other hand, the chemical industry expanded by 9.8 per cent, while construction materials production grew by 9.7 per cent. Light industry also demonstrated strong performance, with output increasing by 13.2 per cent.
Positively, its industrial modernisation program will begin producing several goods that have not previously been manufactured domestically.
In this regard, engineering sector production is expected to include heavy-duty dump trucks, concrete mixer trucks, truck-mounted cranes, motor graders and front-end loaders, as well as transformers designed for renewable energy systems. In the chemical industry, new production lines are planned for hydrogen and sodium sulphate.
It is pertinent to mention that prospective implementation of around 200 additional industrial projects in 2026, with total investments estimated at about 1.7 trillion tenge would further enhance its manufacturing capacity inching towards a strategic diversity and productivity. These projects are expected to create more than 19,000 permanent jobs, including thousands in rural areas and single-industry towns.
Moreover, the automotive industry has become one of the key drivers of Kazakhstan’s technological modernization, showing a 14 percent growth this year. Passenger car production increased by 18.6 percent while agricultural machinery output rose by 6.4 percent, further strengthening the country’s industrial base and creating new economic growth drivers other than the resources-based manufacturing domain.
Moreover, its metallurgical sector is steadily expanding, supported by large-scale modernization at the Qarmet plant and increased production of ferrosilicon, pig iron and steel showing further expansion of its manufacturing capacity and diversity.
The implementation of the 190 industrial projects in 2025, with a total investment of about 1.5 trillion tenge (approximately US$2.78 billion) and the creation of over 23,000 permanent jobs nationwide have further consolidated its industrial pace.
The successful launch of 75 projects is contributing to the emergence of new industrial hubs across the country.
Understandably, its Special Economic Zones (SEZs) and Industrial Parks have played a key role in attracting domestic and international investors by offering modern infrastructure, tax incentives, and streamlined access to long-term contracts.
Its official statistical data also indicates that in 2025-2026, Kazakhstan achieved significant growth in its manufacturing and domestic production, with manufacturing output rising by over 6 percent year-on-year and accounting for 12.7percent of GDP by early 2026. Key sectors like engineering, chemicals, and construction materials witnessed sharp increases, driven by industrial modernization, import substitution, and heavy investments.
The writer concludes that Kazakhstan continues to shift its macro-economic focus from raw material extraction to higher value-added manufacturing, with significant investments in new production lines, including heavy-duty vehicles and chemical products has become a value addition.
Undoubtedly, Kazakhstan’s transport sector continued its systematic development, strengthening the country’s transit and logistics potential, modernizing infrastructure, and improving transportation efficiency under the leadership of President Tokayev.
Kazakhstan is ideally situated at the crossroads of Europe and Asia and continues to strengthen its role as a strategic land bridge across Eurasia. The development of the East-West and North-South international corridors, as well as the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor will further consolidate its role in the region and beyond in terms of trans-regional connectivity, exports and socio-economic integration.
Moreover, its infrastructure projects, fleet modernization, digital transport management solutions, and the expansion of international routes have significantly strengthened Kazakhstan’s status as a regional transit hub gearing its transport sector towards further connectivity and productivity.
According to its official figures, by the end of 2025, transit traffic reached 36.9 million tons, a 6.6 percent increase compared to 2024 (34.6 million tons) reflecting the integrated development of road, rail, air, and water transport, alongside expanded international logistics cooperation.
Furthermore, the large-scale development of the road network during 2025 has further enhanced its overall transport sector efficacy and connectivity. The construction and repair works covered 13,000 kilometers of roads, bringing 94 percent of the national road network into good technical condition. Modernization of internal border checkpoints is underway, with 37 checkpoints scheduled for upgrade by 2027 will further enhance performance of its transport sector.
It appears that digitalization will remain a strategic priority in which the e-Joldar program, digital road passports have been introduced to centralize data on road conditions, traffic volumes, and performance indicators.
Moreover, annual road diagnostics using AI technologies have been launched, and road safety is being enhanced through the installation of up to 220 automated measuring stations, 71 of which are already operational.
Furthermore, civil aviation development focus remained on fleet renewal, route expansion, and airport infrastructure investment during 2025 resultantly, its national fleet increased to 109 aircraft, including eight Airbus A320s and four Boeing 737 MAX 8s showing immense increase in its aerial connectivity.
Kazakhstan operates flights to 30 countries across 135 international routes, with 626 weekly flights as of December 2025 spanning the CIS, Europe, the Middle East, Asia, and Southeast Asia. It employs 25,000 people, ensuring stable operations and service quality.
So, key projects and the restoration of Arkalyk Airport, presentation of the Almaty Airport development master plan, and TAV Airport Holding’s US$362 million investment program have become strategic drivers of its national transport sector.
The development of Rail freight traffic which has reached 320 million tons, up 5.5 percent year-on-year. Around 11,000 kilometers of railways will be repaired by 2029; 4,400 kilometers have already been completed, including 1,575 kilometers in 2025 showing notable and massive development in this sector contributing positively in the overall GDP.
It is a healthy indicator that Kazakhstan has continuously expanded its international road transport corporation, concluding agreements with 42 countries to exchange annual permit quotas. In this connection, a permit-free system was introduced in Turkmenistan, as well as for bilateral and transit shipments with Iran, and agreements were reached with Türkiye. Kazakhstan became the first country authorized to conduct deep transit road transport into China, vividly reflecting phenomenal increase in its regional connectivity because of its quality transport sector.
Its electronic exchange of foreign permits with China and Uzbekistan has successfully increased its regional position. It has digitized 65 percent of international road permits with Azerbaijan, the Kyrgyz Republic, and Türkiye. Hence a total of 73 automated measuring stations has been integrated with the electronic fine issuance system.
The writer submits that Kazakhstan has transformed into a key Eurasian transit hub by reinforcing infrastructure, with transit volumes reaching 27.4 million tons in 2024 and projected to exceed 54 million tons by 2026. Key investments focus on the Trans-Caspian International Transport Route (TITR), including port, rail, and road upgrades to boost capacity further strengthening its national transport system playing a vital role in the greater Eurasian region’s development and trans-regional connectivity.
The writer evaluates that the President Tokayev has chalked out a comprehensive set of priorities aimed at strengthening the country’s energy sector, emphasizing large-scale infrastructure projects, energy independence, environmental modernization, and the development of nuclear and renewable power. Thus, it has already started its journey towards green energy transformation.
It is a reality that Kazakhstan has coal reserves around 33 billion tons however, the government has shifted its priority to the development of renewable energy sources. Over the past five years, approximately US$2.5 billion has been invested in this sector due to which the share of renewables in the national energy balance has exceeded 7 percent, ffurther expanding clean energy production, and it has established cooperation with leading global companies.
The government of Kazakhstan’s consideration to begin construction of a nuclear power plant has great significance which would further diversify its national energy mix and mark a transition to a fundamentally new level of economic development.
Additionally, the completion of maintenance works in all operating 37 thermal power plants (TPP) is a great achievement which has enhanced its energy efficiency.
Moreover, building of three new TPP plants in Kokshetau, Semey, and Oskemen regions without any delays would be a value addition for achieving the desired goal of energy productivity and proficiency. The start of new combined-cycle gas turbine (CCGT) plants in the Turkistan and Kyzylorda regions has been planned.
In 2026, more than 440 electrical substations and over 17,000 km of power grids are scheduled for modernization. The development of nuclear power is seen as a key factor for securing Kazakhstan’s power self-sufficiency and diversification of our economy. At the 2024 referendum, our citizens made a strategic decision to build the first nuclear power plant in Kazakhstan.
The writer summarizes that President Tokayev’s energy policies are making the difference in terms of energy mix, production circle, energy cost and last but not least shifting towards a greener Kazakhstan beneficial for nature, environment and economy alike.
- In recent years, the contribution of SMEs to Kazakhstan’s economy has noticeably grown. To what extent does this reflect the effectiveness of government support policies?
The writer really appreciates Kazakhstan’s noticeable growth in the contribution of the SMEs to Kazakhstan’s macro-economy reaching nearly 40 percent of GDP by late 2025 reflecting a high and effective government support policies. It increased from a lower-level contribution before 2014 to a cornerstone of the economy (4.4 million employees) is directly linked to structured state interventions.
Truely, the implementation of the President’s policy instructions on supporting the SMEs businesses is one of the priorities of its activities. Extraordinarily, Kazakhstan has experienced steady growth in the contribution of SMEs to its economy.
Moreover, the SMEs have been dubbed as one of the main drivers of economic growth of Kazakhstan. The data of the Bureau of National Statistics confirm that today every fifth Kazakhstani works in the business sector, and the share of gross value added of entrepreneurship in the economy is already approaching 40 percent showing increasing contribution of the SMEs sector in the GDP.
As of the end of the second quarter of 2025, the share of gross value added of the in GDP amounted to 7.9 percent, which is higher than last year’s level highlighting that the medium-sized business sector is strengthening and increasing its contribution to value creation.
Furthermore, during 2022–2024, the gross value added of the businesses remained stable at the level of 6.7-6.9 percent while the number of enterprises exceeded 3,000, which indicates the maturity and sustainability of the medium segment.
Astonishingly, in Kazakhstan 99.9 percent of all business entities are micro and small companies which has become the living fabric of its national economy providing employment for more than 4.4 million people, which is 3.9 percent more than a year ago.
Obviously, SMEs account for almost half of the country’s economically active population 45.5 percent, which underscores the importance of the sector for the growth of citizens’ welfare and the stability of the labor market.
The writer acknowledges that on the instruction of the President, the Kazak government is constantly expanding measures to support the SMEs business. The creation of a register including 117 instruments has enabled entrepreneurs to develop production, improve technologies, enter export markets, and attract financing. Hence, the baqylauda.qoldau.kz service has become a universal portal to support measures, which have already been used by about 222 thousand people confirming the demand for and accessibility of the instruments.
Since 2024, the country has been implementing a comprehensive policy aimed at leveling the conditions for doing business, stimulating company growth, and strengthening the role of medium-sized businesses creating a predictable and fair environment for entrepreneurs.
In addition, the creation of a register of mandatory requirements has digitized and systematized all requirements imposed on businesses ensuring transparency and making it easier for entrepreneurs to comply with mandatory norms. Resultantly, SME support in Kazakhstan is becoming systemic and understandable for the business community.
Comparative studies of Kazakhstan’s SMEs sector clearly establishes that government’s comprehensive supports youth and women entrepreneurship through the expansion of financial instruments.
The sector has also received an additional boost from the Orleu preferential financing program, which has funded over 1,700 projects totaling 482 billion tenge.
The writer resolves due to futuristic SMEs, policy of the President Tokayev it has become backbone of its macro-economy, one of the main tools of its community development, effective tool for eradication of rural & urban poverty, key instrument for generation of new jobs and last but not least, strategic equalizer of its sustainable economic growth in the last decade.
It is obvious that President Tokayev’s policies of total openness, institutional transparency, merit and fair play has successfully achieved economic equality, social justice, rule of the law and last but not least, overall performance of the state and its organs further strengthening investor confidence and improving the business environment in Kazakhstan. Thus, it has been rightly labelled as heaven on earth for the foreign investors making investments in Kazakhstan.
Gradually, Kazakhstan improved its ranking in Transparency International’s 2024 Corruption Perceptions Index (CPI), climbing five spots to 88th place among 180 countries reflecting a high level of transparency in its economic sphere, political system and social engagements.
Evidently, it scored 40 points, marking a historic high due to comprehensive measures to combat corruption. The global average score was 43, while in the Eastern Europe and Central Asia region (19 countries) 35.
Moreover, Kazakhstan is the highest-ranked country in Central Asia and the only country in the region to improve its transparency ranking significantly outperforming its regional neighbors, including Uzbekistan (121st), the Kyrgyz Republic (146th), Russia (154th), and Tajikistan (164th).
The writer highly appreciates its new law and the “Returned Asset Management Company” forming to return illegally acquired assets (nearly 850 billion tenge as of late 2025) to the state for use in social and economic projects.
Furthermore, coordinated initiatives of de-monopolization & competition have dismantled oligopolies and increased fair competition by reducing the influence of a small elite, aiming to create a level playing field. It has successfully changed its economic security outlook and socio-politico sphere striving hard to achieve high levels of transparency and openness.
The writer recognizes that the introduction of a national registry of Kazakh producers, electronic procurement systems, and a planned digital ecosystem facilitating state-business interactions has become a new benchmark of its overall transparency, accountability and openness.
Last but not least, rebranding of legal support has effectively reduced illegal interference in business, lowering investigations against entrepreneurs, opening a new grand window for local and international investors to make investments in the country’s various sectors.
The writer recapitulates that these integrations have dismantled old corruption networks and re-invest in the economy and has strengthened investor confidence in consistent, transparent, and legally fair implementation.
Undoubtedly, the constant and continued structural reforms and long terms economic, political and social policies of President Tokayev has successfully changed the economic, social, political and diplomatic outlook of Kazakhstan which has reflected in the free will of common people voted for the approval of most recently held referendum on March 15, 2026. Hence it is the culmination of a seven-year, multifaceted reform period designed to transition from a “super-presidential system” towards a modernized presidential republic with a strong parliament.
Obviously, it consolidates the New Kazakhstan grand agenda initiated in 2022 establishing a new institutional architecture aimed at long-term governance stability.
The new Constitution merges reforms by formally dismantling the remaining relics of the previous political order and embedding new rules of interaction. Thus, its approval moves the country away from a dual-center governance model creating unity and harmony of the political system.
Moreover, the shift from a bicameral to a unicameral parliament (Kurultai) is designed to enhance its legislative efficiency, and productivity permitting for faster approval of reforms and reducing bureaucratic bottlenecks. Hence Kazakhstan has just started its journey of liberal democracy.
The writer admits that re-establishment of the Constitutional Court will further improve the protection of citizens’ rights by reasserting that natural resources belong to the people and clarifying the state’s role, it directly addresses public demands for fairness.
The writer presents that the new constitution lays the groundwork for Kazakhstan’s development by creating a structured and more centralized decision-making process by creating a more presidential system with centralized executive control aiming to maintain stability amid regional and global political turbulence.
The writer appreciates that the reintroduction of the Vice President position (appointed by the President with parliamentary approval) and the formalization of the Khalyq Kenesi (People’s Council) are designed to create a clearer, more predictable succession and administrative framework. Additionally, modernizing the judicial system, aiming at reducing institutional uncertainty for foreign investors and promoting a human-centered” economic model has become the central point of the new constitution.
Ultimately, the 2026 Constitution facilitates Kazakhstan toward a formal hybrid governance model that prioritizes a stable, modern state over swift democratic transition.
Definitely, the new Constitution marks a key step in reshaping Kazakhstan’s political system and its regional and international engagements.
It seems that Kazakhstan moves towards a formal hybrid governance model, aligning with a broader regional trend of institutional experiments that stabilise political leadership rather than transfer and redistribute power. Thus, it is the first giant step towards political diversity, maturity and continuity gearing the country towards a new political direction with the presidential authority playing a coordinating role while weakening the legislative body and the scrutiny it provides.
Obviously, it also indicates a shift in approach to regional and international relations in both economic and human rights matters gearing the state towards further democratic freedom for just and democratic governance.
