Economic expansion bolstered by a 3.9% agriculture sector uptick
Agricultural Advancements Rebuild Kazakhstan's Economic Landscape
Sparking optimism for the nation's economy, preliminary figures for the initial four months of 2025 highlight a 6% increase in Kazakhstan's GDP. This upward trend can be attributed to favorable conditions within significant economic sectors, most notably agriculture — which saw a commendable 3.9% rise. According to reports from Liter.kz, citing the Ministry of National Economy, this surge is expected to reinforce Kazakhstan's status as a provider of top-notch agricultural products and a reliable exporter.
The agricultural sector perseveres in showcasing a persistent positive trajectory, contributing significantly to Kazakhstan's economic growth. Between January and April, the index of gross output recorded a 3.9% gain, while in 2024, the volume of agricultural gross output jumped by 13.7% to an impressive 8.3 trillion tenge.
Over the past half-decade, more than 2.1 trillion tenge has been earmarked to propel the agro-industrial complex. In 2024 alone, funding for spring and harvest activities surged over threefold, reaching an unprecedented 580 billion tenge — a figure that previously remained confined to the 180 billion tenge mark.
Seeking to equip farmers with the means to adopt cutting-edge agricultural technologies, there have been favorable changes in loan policies. Farmers are now eligible for affordable 5% annual interest rates on loans, with loan guarantees worthy of up to 85% of the loan amount if collateral falls short. Consequently, the agricultural sector has seen a surge in production efficiency and competitive edge.
Boosting investment in agriculture's main capital has witnessed a twofold increase — from 565.4 billion tenge in 2020 to 919 billion tenge in 2024. Parallel growth is evident in investments in the food industry, which soared from 109.1 billion tenge to 180.8 billion tenge during the same period.
The agricultural sector's labor productivity has also undergone a steady increase: in 2023, it amounted to a substantial 4.2 million tenge per employed individual, indicating a 1.7-fold increase compared to 2019.
Kazakhstan's agricultural products are finding avid buyers in Central Asian, European, and Middle Eastern regions. Over the past five years, exports from the agro-industrial complex have experienced a 1.7-fold increase, reaching an impressive 5.1 billion USD in 2024.
As Kazakhstan continues to forge ahead, the Concept for the Development of the Agro-Industrial Complex up to 2030 is being implemented. The vision embraces the diversification of crops, the processing of 70% of the output, the promotion of yield and labor productivity enhancements, the attraction of investments, and the reliance on 80% of domestically sourced seeds.
Beyond local growth, Kazakhstan is eager to establish itself as a major player in the global market. To achieve this, Kazakhstan's agricultural sector is embracing contemporary strategies and setting ambitious goals. Among these objectives is the aspiration to produce and distribute domestically produced fertilizers to all agricultural producers by 2030. The country is also prioritizing food security, aiming to fulfill domestic agricultural requirements. With a target of doubling fertilizer exports by 2025, Kazakhstan seeks to consolidate its position as a significant regional supplier.
In line with these objectives, Kazakhstan is set on promoting sustainable growth. Key facets of this effort include the deployment of eco-friendly coal-based chemical production methods and effective carbon emission management. Kazakhstan's ambitions extend beyond domestic prosperity, aiming to amalgamate advanced technologies like precision agriculture, IoT, and AI-based decision support systems to optimize fertilizer usage, enhance resource efficiency, and expand the chemical industry.
Through resourcefulness, diplomacy, and insightful investment, Kazakhstan is poised to reap the rewards of a flourishing agricultural sector for years to come.
- To sustain the growth in the agricultural sector, it's crucial to consider the financial aspect, with affordable loans and loan guarantees providing farmers access to the necessary funds for adopting modern agricultural technologies.
- As Kazakhstan strives to become a key player in the global market, it aims to double fertilizer exports by 2025, reinforcing its status as a significant regional supplier and bolstering its financial resources through increased exports.
