Zhibek Serik | 07.04.2024
How has infrastructure development in Kazakhstan led to economic growth?
Kazakhstan's infrastructure development has been a cornerstone of the nation's economic growth strategy, aiming to modernise and expand critical transportation, urban infrastructure networks and energy.With ambitious initiatives like the «Nurly Zhol» program, Kazakhstan has embarked on a transformative journey to bolster its infrastructure, enhancing connectivity internationally.From the construction of new highways and railways to the expansion of ports and airports, Kazakhstan's infrastructure projects are poised to catalyse economic development and investment.
Infrastructure investment trends in Kazakhstan:
Out of the 195.6 billion USD of investments tracked between 2000 and 2019, energy projects account for just over half of Kazakhstan’s planned and under construction infrastructure projects at around USD 112.5 billion USD (58%), while transport projects make up 20%, manufacturing 14%, and mining and quarrying 7%. Additionally, water projects, which include both water supply projects as well as irrigation and water management are limited to only USD 471 million.
What’s next?
This allocation of investments highlights Kazakhstan's strategic focus on energy infrastructure as a key driver of economic development, leveraging its significant reserves of oil, gas, and many more. The substantial investment in transportation projects underscores Kazakhstan's commitment to enhancing connectivity.
What about investment in water projects?
The relatively modest investment in water projects raises concerns about the country's water management practices and the need for greater attention to ensure sustainable utilization of water resources amid growing demand and environmental pressures.
Coming to the end, infrastructure development in Kazakhstan has driven economic growth. Enhanced transportation networks and energy infrastructure have boosted trade and investment and even energy exports! Job creation from these projects has spurred economic activity and consumer spending which has led to economic growth!
Infrastructure investment trends in Kazakhstan:
Out of the 195.6 billion USD of investments tracked between 2000 and 2019, energy projects account for just over half of Kazakhstan’s planned and under construction infrastructure projects at around USD 112.5 billion USD (58%), while transport projects make up 20%, manufacturing 14%, and mining and quarrying 7%. Additionally, water projects, which include both water supply projects as well as irrigation and water management are limited to only USD 471 million.
What’s next?
This allocation of investments highlights Kazakhstan's strategic focus on energy infrastructure as a key driver of economic development, leveraging its significant reserves of oil, gas, and many more. The substantial investment in transportation projects underscores Kazakhstan's commitment to enhancing connectivity.
What about investment in water projects?
The relatively modest investment in water projects raises concerns about the country's water management practices and the need for greater attention to ensure sustainable utilization of water resources amid growing demand and environmental pressures.
Coming to the end, infrastructure development in Kazakhstan has driven economic growth. Enhanced transportation networks and energy infrastructure have boosted trade and investment and even energy exports! Job creation from these projects has spurred economic activity and consumer spending which has led to economic growth!
