GDP Growth for Q1 Stands at 3%
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At the Government session chaired by Prime Minister of the Republic of Kazakhstan Olzhas Bektenov, the results of socio-economic development and execution of the republican budget for January-March 2026 were reviewed, primeminister.kz reports.
Reports were delivered by Minister of Finance Madi Takiyev, Minister of Energy Yerlan Akkenzhenov, Minister of Industry and Construction Yersayyn Nagaspayev, Deputy Minister of National Economy Azamat Amrin, First Deputy Chairman of the National Bank Yerulan Zhamaubayev, and akims of Atyrau and Akmola regions.
The Head of State, at an expanded Government meeting, instructed to ensure high-quality and sustainable economic growth. This task is being implemented through the development of the manufacturing industry, increased investment activity, and technological upgrading of production. During this period, real GDP growth reached 3%. It is important to note that this result was driven by steady growth in the non-oil sector, particularly in manufacturing, transport, construction, and trade," Olzhas Bektenov noted.
He emphasized that despite external economic conditions, the non-oil sector demonstrates resilience and competitiveness. According to the Ministry of National Economy, the highest growth was recorded in construction (14.8%), transport (12.8%), and manufacturing (8.5%).
While overall macroeconomic indicators are growing, some regions have shown declines in certain areas. The akims of Atyrau and Akmola regions, which failed to meet planned growth targets, were instructed to conduct a detailed analysis of the reasons and strengthen control over key indicators, taking necessary measures.
The Prime Minister stressed the importance of focusing on achieving sustainable economic growth above 5% by the end of the year and maximizing the use of all available reserves in non-oil sectors.
Attention was drawn to the inadmissibility of a formal approach and the need to implement specific industrial and infrastructure projects, including the introduction of digital solutions and artificial intelligence.
Competition is increasing day by day. It is long overdue to stop empty talk. We must focus on real actions - the implementation of large industrial and infrastructure projects and the introduction of artificial intelligence in all spheres. We must ensure the strictest financial discipline and create a fair system of social support, where the state assists only those who truly need it, and not everyone indiscriminately, as is currently the case," Olzhas Bektenov emphasized.
During the meeting, the Prime Minister issued a number of instructions.
In particular, the main task is to ensure further reduction of inflationary pressure. In March, inflation decreased to 11%. The need to keep under control the high-quality implementation of the Comprehensive Plan to Control and Reduce Inflation and the Joint Action Program for Macroeconomic Stabilization and Improving the Well-being of the Population was noted. It is also necessary to increase localization and expand existing production facilities for the most important items, including food products.
The Ministry of Agriculture was instructed to take additional measures to increase productivity in livestock breeding, expand greenhouse, vegetable, and dairy production, and deepen processing. The Ministry of Trade was tasked with intensifying work on the development of wholesale distribution infrastructure and creating modern storage and logistics capacities, continuing regular monitoring and taking measures to curb unjustified price increases, especially for socially significant food products.
In addition, the Ministry of Trade, together with the regions, must ensure the saturation of the domestic market with domestic products, identify unproductive intermediaries, and develop digital traceability of supply chains.
Arman Abayevich, last week I instructed you to bring order to the major wholesale markets. It is no secret that so-called ‘organized groups’ operate illegally in the markets. They artificially inflate the prices of vegetables, fruits, meat, and other products. These are the unproductive intermediaries. Together with the Ministry of Internal Affairs, the State Revenue Committee, and the Agency for the Protection and Development of Competition, you must address this issue in a targeted manner," the Prime Minister noted.
At the same time, tariff policy must be predictable and synchronized with inflation targets. In connection with the expiration of the moratorium on tariffs and prices for gasoline, the Ministries of National Economy, Energy, Industry and Construction must take measures to prevent their significant contribution to the overall inflation rate. Systematic demonopolization of markets and strengthening of antimonopoly control in the markets of food, fuel, transport, and utilities are required. In this regard, the Ministry of National Economy, together with the Agency for the Protection and Development of Competition and sectoral state bodies, must continue joint work in this direction.
Attention was paid to the manufacturing industry, whose share in the overall economic structure has for the second year in a row surpassed mining. The need to take additional measures to stimulate the real sector was emphasized.
The Ministry of Industry was instructed to develop, within one month, incentive measures to support metallurgy and the chemical industry, expand the product range, and increase capacity utilization.
The Samruk-Kazyna Fund, together with the Ministries of Foreign Affairs, Industry, and Trade, must ensure the search for and attraction of imported gold-bearing and polymetallic raw materials to load domestic metallurgical enterprises.
The Ministry of Energy must ensure that the polypropylene production company in Atyrau Region reaches its design capacity. The Ministry of Industry must also ensure the timely commissioning of at least four priority chemical industry projects planned for 2026 as part of additional growth reserves.
In the construction sector, emphasis was placed on ensuring stable dynamics this year. It was noted that the construction season has already begun, but a number of systemic issues remain unresolved. This primarily concerns stimulating construction through financing of rental housing and timely connection of engineering infrastructure to new development areas. Akimats show insufficient activity and lack of proactive work in launching projects. Despite a declared need of 516 billion tenge for housing commissioning, the regions have confirmed a need for only 249 billion tenge - almost twice lower than required. If akimats do not make decisions in the near future, they will lag behind in housing commissioning. In this regard, the Ministries of National Economy and Finance were instructed to develop, within one week, specific mechanisms to reimburse local budgets for interest rates, cover the principal debt on bonds, and create transparent conditions for regions to participate in these instruments. Ready-made solutions with clear parameters and funding sources are required.
To maintain planned oil production levels, the Ministry of Energy was instructed to hold negotiations with major subsoil users on measures to increase production. To meet the country’s demand for energy resources, gas production capacities must be increased. The Ministry of Energy, together with QazaqGaz and KazMunayGas, must complete the construction this year of a gas processing plant at Kashagan with a capacity of 1 billion cubic meters and commission the plant in Zhanaozen next year. In addition, attention was focused on the development of the gas transportation system. The strategic task is the successful implementation of the project to build the second line of the "Beyneu - Bozoy - Shymkent" gas pipeline, which will significantly increase gas availability. The Ministry of Energy must ensure appropriate coordination and strict control over this work.
In the transport sector, instructions were given to increase the capacity of the railway network, accelerate the modernization of the Aktau and Kuryk ports, and ensure the coverage of 11,000 km of roads with repair works.
In the agro-industrial complex, the Ministries of Finance and Agriculture were instructed to resolve the issue of financing grain transportation, and, together with other state bodies and the Baiterek Holding, to find the necessary funds to implement the loan guarantee instrument in livestock breeding and crop production. To expand access to financial resources, social entrepreneurship corporations should be allowed to finance agricultural entities for investment purposes and working capital. In this regard, the Ministries of Agriculture and National Economy, together with the Agency for the Protection and Development of Competition, must introduce the relevant amendments to the Government resolution within two weeks.
Summing up, the Prime Minister noted that at the meeting last month on ensuring economic growth in 2026, measures to stimulate economic growth reserves were approved, but the resolution of some issues is being delayed. This concerns the capitalization of the Baiterek Holding and the issuance of government securities by akimats to connect engineering and communication infrastructure to housing. The process of accompanying documentation for road projects planned for financing under state guarantees is also moving slowly. Work on identifying investment projects that increase added value in priority industry segments is not being carried out effectively enough.
It is necessary to promptly resolve all these problematic issues. I remind you that each manager bears personal responsibility for achieving planned growth indicators by sector. With the adoption of the Constitution, a new stage in the country’s development begins. Naturally, new requirements will be imposed on the state apparatus, first and foremost on its leaders. Every manager must take a fresh look at their work and at themselves. Do they meet the new requirements and the new nationwide modernization agenda set by the Head of State? Real results are required from every manager. Always keep this in mind," Olzhas Bektenov emphasized.
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