The Unassuming Economist

From The Astana Times:

“Making fiscal policy more pro-poor, improving the quality of education, and strengthening climate resilience are critical priorities for policymakers to reduce poverty and inequality in Kazakhstan, according to the Kazakhstan Poverty and Equity Assessment 2024 report, published by the World Bank on Dec. 12.

Kazakhstan’s economy has shown robust growth since 2006, with an average annual rate of 4.7%. This has improved living standards and elevated the country to upper-middle-income status, lifting 5.9 million people out of poverty and reducing the poverty rate from 49.5% to 8.5% over the same period.

Consumption growth, fueled by higher labor incomes, has been the main driver of poverty reduction. However, the report identifies three distinct phases in Kazakhstan’s poverty reduction journey. Between 2006 and 2013, poverty declined rapidly but saw a partial reversal during the 2014-2016 economic downturn, which increased poverty rates. From 2016 to 2021, poverty reduction resumed but at a slower pace.

The middle class has expanded significantly since 2006, increasing 2.5-fold to reach 67% of the population in 2021, compared to 26% in 2006. However, growth stagnated after 2013 as structural transformation and productivity gains slowed. The report underscores the importance of diversifying Kazakhstan’s economy, which remains heavily dependent on commodity exports.”

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