Adilbek Baishigashev | 08.06.2024


The impact of migration on the economic state of Kazakhstan

Recently, there has been a lot of political discussion around migration. Although the majority of people have positive opinions of immigration, there are some false beliefs and worries. For instance, some think that migrants are a burden on economies.

Migration may seem to be an extremely detrimental factor for the country's development since the influx of a large number of people affects the demographic and economic components. However, migration, as it turns out, plays a significant role in the country’s economy.

New immigrants take up positions in industries like construction, agriculture, and services. In 2021, migrants made up about 12% of the construction workforce and about 15% in agriculture. This raises productivity and lessens labor shortages in these sectors. Additionally, the contribution of migrants to Kazakhstan's GDP is about 1-2% annually. This means that migration has a significant impact on a country's economic growth.

Kazakh's economy is boosted by migrants who are entering the country in terms of stimulating consumption, as shown through the demand for various sectors like housing, food, clothes, and transport. This abnormally high demand not only drives indigenous production but has a significant contribution to GDP growth. The other major category of migrant labor consists of self-employed entrepreneurs working in areas such as IT, PR, restaurants, and clothing shops. Diversification of the economy should assist in improving employment opportunities while at the same time increasing government tax revenues that can be utilized for development projects.

Moreover, expatriates also bring cutting-edge technologies and innovative work practices into Kazakhstani companies thereby catalyzing modernization processes that make them competitive in international markets. These aliens present fresh perspectives for domestic businessmen with regard to the adaptation and evolution required for long-term prosperity. Additionally, their qualifications fill gaps that have been observed in some sectors that lack quality or experienced personnel locally. Therefore, these immigrants when absorbed into the local job market help address critical skills shortages besides enhancing diversity and innovation among their employers.

Moreover, it can stimulate tourism value by offering tourists a broad range of experiences and places. There are many other reasons why cultural diversity can be positive for a country. In addition to that, it can help in boosting foreign investment and economic growth. It has also been noted that having different people in a nation is good for business as it may attract international companies as well. This is whereby this kind of a diverse environment promotes creativity and innovation among businesses thus leading to increased levels of FDI hence accelerating economic growth. Additionally, Kazakhstani’s multicultural identity must be showcased to attract more tourists and generate income within its tourism sector which will subsequently support local businesses. Besides having a harmonious society, one should take advantage of all its values including those related to language proficiency.

In general, migration can have a fairly positive impact on the future growth of the economy of our country. Of course, we should not forget that anything has its pros and cons, but the advantages of migration outweigh these disadvantages. The current global political situation is ambiguous, so the growth of expats in our friendly country is still ahead, and what will happen next will be known in the distant future.
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