Tourism Generated KZT 630 Billion in Tax Revenue for Kazakhstan
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Tax revenues from Kazakhstan’s tourism sector reached KZT 630 billion ($1.2 billion) last year, up 18% from the previous year, Minister of Tourism and Sports Yerbol Myrzabossynov said at a government meeting.
More than 600,000 people are currently employed in the industry, the minister noted.
Tax revenues increased by 18% to KZT 630 billion. Foreign tourists spent $2.9 billion in Kazakhstan. Investment attracted to the tourism sector rose by 33% year-on-year to KZT 1.3 trillion. The industry's contribution to the national economy reached KZT 5 trillion," Myrzabossynov said.
According to the minister, eco-tourism continues to demonstrate steady growth. Visitor numbers to Kazakhstan’s national parks reached 3.7 million last year.
Business and convention tourism is also emerging as a sector with significant export potential.
Last year, Kazakhstan hosted 13 international events that generated approximately $18 million for the economy. To strengthen the country’s position in the global market, existing infrastructure constraints must be addressed. In particular, Almaty, as the country’s main business hub, requires a modern international-standard convention and exhibition centre. An appropriate decision on this issue should be made," Myrzabossynov said.
He also highlighted the strong potential of medical tourism, noting that Kazakhstan welcomed around 80,000 foreign patients last year.
Another unique tourism asset of the country is the Baikonur complex, the world’s first and largest spaceport. The time required for foreign visitors to obtain permits has been reduced to 10 days. This has improved accessibility and enabled tour operators to expand launch-viewing programmes and off-launch tourism activities. The Gagarin Launch Pad, the Assembly and Refuelling Complex, and the Dynamic Test Facility transferred to Kazakhstan have considerable tourism potential. However, their development will require modernisation and substantial investment. Project teasers have already been prepared for potential investors," the minister said.
Myrzabossynov noted that one of the key events of this year will be the international tournament "Games of the Future", which will take place in Astana from July 29 to August 9.
The event is expected to bring together around 900 athletes from more than 50 countries, as well as representatives of international sports organisations, the digital industry, media outlets and fans.
The minister said that Kazakhstan is currently implementing 328 tourism investment projects with a total value of approximately KZT 1.3 trillion. Twenty-five internationally branded hotels are expected to be commissioned.
Among the major projects scheduled for completion by the end of 2027 are a Hilton hotel in Shymkent worth KZT 17.5 billion, a Marriott hotel complex in Konaev valued at KZT 28 billion, and the Zhibek Zholy resort and entertainment complex with an investment value of KZT 53.3 billion.
The minister also said that the sector’s digital transformation is continuing. More than 900,000 users have already been registered in the eQonaq tourist flow monitoring system, while an upgraded Kazakhstan.travel portal featuring an AI assistant and traveller services is scheduled to be launched by the end of 2026.
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Kazakhstan Extends Ban on Export of Certain Timber Products for Six Months
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Kazakhstan has extended a ban on the export of certain types of timber products for an additional six months.
The relevant order was signed by the Ministry of Industry and Construction, an agency correspondent reported.
The export from the territory of the Republic of Kazakhstan by all modes of transport of certain types of timber products, regardless of their country of origin, shall be prohibited for a period of six months, with the exception of EAEU Commodity Nomenclature code 4406910000 (‘Other coniferous wooden railway or tramway sleepers’) and EAEU Commodity Nomenclature code 4401310000 (‘Wood pellets’), provided that their country of origin is the Republic of Kazakhstan," the order states.
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Kazakhstan’s Oil Production Rises to 100 Million Tonnes Per Year
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Kazakhstan’s annual oil production has increased from 80 million tonnes to 100 million tonnes over the past decade, a correspondent reports.
Growth was uneven, with declines in 2020-2021 due to the pandemic and OPEC+ production restrictions. However, in the long-term trend, Kazakhstan has strengthened its position," the Energy Analytics Telegram channel said.
According to the report, the key drivers behind the increase in oil production have been the country’s major energy projects - Tengiz, Kashagan and Karachaganak.
The increase has been particularly noticeable since 2016, when production rose from 78 million tonnes in 2016 to 86 million tonnes in 2017 (...) Kazakhstan has managed not only to maintain production levels but also to reach a new record high of around 100 million tonnes in 2025," the report said.
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OPEC+ to Increase Oil Production in July
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OPEC+ countries have agreed to increase oil production by 188,000 barrels per day. The adjustment will take effect in July 2026.
According to the published communiqué, the production increase will apply to Kazakhstan, Russia, Saudi Arabia, Iraq, Kuwait, Algeria and Oman.
Kazakhstan's production target has been set at 1.608 million barrels per day. Saudi Arabia's quota will amount to 10.353 million barrels per day, while Russia's production target has been set at 9.824 million barrels per day.
The next meeting of participating countries is scheduled for July 5.
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Kazakhstan to Build Its First Sanitary Ware Manufacturing Plant
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Kazakhstan is set to establish its first plant for the production and assembly of sanitary ware and bathroom accessories. The project will be implemented by Spanish company Roca Group, Kazakhstan’s Ministry of Foreign Affairs reported.
The project will involve investments of 44.1 billion tenge. Once operational, the facility will be capable of producing up to 500,000 units annually and is expected to create around 300 permanent jobs.
Gabidulla Ospankulov, Chairman of the Investment Committee of Kazakhstan’s Ministry of Foreign Affairs, met with company representatives to discuss the progress of the project.
During the meeting, Ospankulov outlined the government support measures available to investors, including tax incentives, and highlighted the advantages of doing business in Kazakhstan.
The ministry added that an investment agreement for the project has been signed by the Government of Kazakhstan, the administration of the Kyzylorda Region and Roca Group.
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National Bank Sees No Tenge Weakening After Base Rate Cut
Kazakhstan’s National Bank does not expect the tenge to weaken significantly following its decision to lower the base interest rate, National Bank Governor Timur Suleimenov said at a briefing, a correspondent reports.
We do not expect the tenge to weaken as a result of the change in the base rate. A 17% base rate preserves the attractiveness of tenge-denominated assets. In other words, it remains far more beneficial for people to invest in tenge assets than in foreign-currency assets. Accordingly, a one-percentage-point reduction will not alter the attractiveness of tenge assets, including bank deposits, corporate bonds, and government and quasi-government debt instruments. Therefore, we expect demand for tenge assets to remain at its current level, which means the exchange rate is unlikely to change significantly," Suleimenov said.
At the same time, the National Bank chief noted that the exchange rate may fluctuate under the influence of structural factors.
This is largely a matter of demand. At the beginning of the year, demand is usually lower because it takes time for budget funds to reach programme administrators and for them to announce various tenders. As a result, there is little demand for foreign currency during that period. Around this time of year, however, tender winners have typically been determined, and market participants begin purchasing US dollars. This seasonality is always present," he said.
According to Suleimenov, the holiday season also contributes to higher demand for foreign currency, as Kazakhstanis increasingly purchase dollars for overseas travel, putting some pressure on the exchange rate and contributing to a modest rise.
However, he stressed that the fundamental economic outlook remains favourable.
Oil prices are rising. Prices reflected in the metals index have also increased. In terms of foreign-currency earnings entering the market, the situation is positive. Unless there are external shocks, I see no grounds for any weakening of the national currency," the National Bank governor said.
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National Bank Cuts Base Rate to 17%
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The Monetary Policy Committee of the National Bank of the Republic of Kazakhstan has decided to set the base rate at 17.00% per annum with a corridor of +/- 1 percentage point. The decision is based on the results of the forecast round, updated assessments of key macroeconomic indicators, and the balance of inflation risks, nationalbank.kz reports.
Annual inflation continued to ease. In May, it stood at 10.4%, down by 2.5 percentage points from its peak of 12.9% in September last year.
Food inflation declined to 10.7%. This was driven by slower price growth for fruit and vegetables, socially important food products, and certain imported goods. Non-food inflation remained unchanged at 11.7%. This reflected the stronger tenge and signs of stabilizing consumer demand, including a moderation in consumer lending growth. Services inflation continued to decline, reaching 8.7%, mainly due to more stable demand and slower growth in utility tariffs.
Monthly inflation slowed to 0.7% in May, from 0.8% in April. Core inflation and seasonally adjusted inflation also declined to 0.7%.
One-year-ahead inflation expectations stood at 12.7% in May. Over the past two months, they have ranged between 12.4% and 12.7%. This marks an improvement from the period since mid-last year, when expectations had remained persistently above 13-14%. At the same time, regulated price reforms continue to play a significant role in shaping these expectations. Meanwhile, professional market participants’ inflation expectations for the end of 2026 remain unchanged at 10.0%.
Global food prices continue to rise moderately, driven by higher prices for vegetable oils, meat and cereals, while prices for sugar and dairy products are declining.
In Russia, inflation is showing signs of deceleration. In the EU and the US, the disinflation process has stalled amid persistently high energy prices. Against this backdrop, major central banks continue to take a cautious approach to monetary policy and emphasize their readiness to adjust policy if needed.
Under the updated baseline scenario, a higher level of Brent oil prices is assumed through the end of this year, at USD 90 per barrel, compared with the previous forecast assumptions. Oil prices continue to be affected by persistent geopolitical tensions in the Middle East. The forecast assumes a gradual decline in oil prices to USD 75 per barrel in 2027 and USD 65 per barrel in 2028.
The inflation forecast for 2026 has been revised down to 9-11%, from the previous range of 9.5-11.5%. The revision reflects a faster-than-expected actual decline in inflation, limited pass-through from the VAT increase to consumer prices, and the strengthening of the tenge. The National Bank expects inflation to move into single digits this year. This will be supported by moderately tight monetary conditions and joint measures with the Government to ensure macroeconomic stability. Inflation is projected to slow to 5.5-7.5% in 2027. In 2028, it is expected to stabilize close to the 5% target. This will be supported by a normalization of the external inflation environment, lower inflation expectations, a narrowing of quasi-fiscal stimulus, and fiscal consolidation.
The balance of risks to inflation remains tilted to the upside, although these risks have become less pronounced. At the same time, restrained domestic demand in the first half of the year and favorable external conditions, which supported the strengthening of the tenge, have partly offset accumulated pro-inflationary pressures. The main domestic risks stem from an acceleration in demand and expansion of monetary aggregates amid large-scale quasi-fiscal stimulus, volatile inflation expectations, and the actual execution of utility tariff and fuel price reforms. External risks are associated with persistent geopolitical tensions, which may increase external inflationary pressure and raise volatility in global markets.
The GDP growth forecast for 2026 has been revised up to 4.5-5.5%. The revision reflects stronger actual economic activity and more favorable oil price assumptions. GDP growth is expected to stand at 3.5-4.5% in 2027-2028. In the medium term, economic growth will be shaped by more balanced domestic demand and lower oil prices.
The slowdown in inflation achieved so far, together with the improved forecast, created room to reduce the base rate at this meeting. The decision reflects the accumulated improvement in inflation dynamics and the revision of forecast estimates.
At the same time, moderately tight monetary conditions need to be maintained. This is necessary to bring inflation down to single digits this year and to achieve the target in the medium term. Further decisions will be made based on incoming data on inflation, its trajectory relative to the forecast, domestic demand dynamics, the execution of fiscal parameters, and the scale and effects of quasi-fiscal stimulus.
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