Kazakhstan's industrial growth shows manufacturing gains offsetting mining decline

Kazakhstan's economy demonstrated expansion in the first seven months of 2026, with a notable shift towards manufacturing and investment as key growth drivers, even as the traditionally dominant mining sector experienced a downturn. Industrial output reached approximately $83.3 billion, while investment in fixed capital climbed to $24.9 billion, signaling a directed flow of capital into production and infrastructure.

The manufacturing sector emerged as a significant contributor, with output growing by 9% to $39.2 billion, accounting for nearly half of the total industrial production. This growth was particularly strong in pharmaceuticals (up 38.5%), fabricated metal products (up 35%), chemicals (up 26.9%), and machinery (up 22%). In contrast, mining and quarrying output fell by 4.4% to $38.4 billion, with crude oil production down 8.9% and natural gas output declining by 5.5%.

This divergence highlights a potentially evolving economic structure for Kazakhstan. While the nation's export earnings remain heavily reliant on raw materials like oil, the expanding manufacturing base offers a buffer against fluctuations in the extractive industries. Growth was also observed in utilities, with electricity, gas, steam, and air conditioning supply increasing by 12.2%, and water supply and waste management rising by 9.5%.

Investment patterns further support this trend. Industry attracted the largest share of fixed capital investment, comprising 41.6% of the total. Manufacturing alone received 14.7%, while mining accounted for 14%. This focus on industrial and infrastructure development suggests a strategic effort to diversify and strengthen the nation's economic foundation beyond its commodity-dependent exports.