Kazakhstan’s industrial sector grew by 6.4% year-on-year in the first five months of 2025, driven by increased oil production and strong performance in manufacturing, according to Halyk Finance.

Kazakhstan’s industrial sector posted robust growth between January and May 2025, expanding 6.4% year-on-year, with the mining and manufacturing industries playing a dominant role, data from Halyk Finance’s analytical centre showed on June 26.

The mining sector, which contributes around 12% to the country’s GDP, expanded by 7.8%. This was largely attributed to rising oil production at the Tengiz field, which also bolstered the output of diesel, gas, fuel oil, and petroleum coke. The increased oil activity also stimulated wholesale trade and transport, making oil a primary engine of economic growth during the period.

Crude oil production rose by 10.2%, coal by 11.3%, and metal ores by 0.8%. With mining comprising 45.5% of the country’s total industrial output, the sector’s performance had a wide-reaching impact on the economy. However, analysts expect this momentum to ease as the Tengiz expansion nears completion and global oil prices potentially fall, particularly if tensions between Iran and Israel de-escalate.

The manufacturing sector, contributing 11.9% to GDP, grew by 6% in the same period. Food production and mechanical engineering both increased by 10.5%, while ferrous metallurgy rose 3.4%. A 2.1% decline in basic precious and non-ferrous metals production weighed slightly on the overall figures.

Meanwhile, growth in the energy sector stalled at 0.1%, down sharply from the previous year. This was attributed to a decrease in the value of electricity transmission and distribution, although natural output edged up by 2.9%.

The water supply and waste management sector continued its downward trend, falling by 6.2% year-on-year, following a smaller 0.1% dip the year before. The latest decline was linked to reduced volumes in water treatment and waste collection.

Seventeen of Kazakhstan’s regions posted industrial growth, with Zhambyl and Zhetisu Regions and the city of Shymkent standing out for their particularly strong performance.

Copied