KazEconomy

📊 Is a Vehicle Tax Necessary? Ecology, Fairness, and Prospects

The vehicle tax in Kazakhstan remains one of the most debated topics. Its contribution to the state budget is minimal — only 2% of all tax revenues or approximately 700 billion tenge. Planned amendments to the Tax Code, aimed at reducing rates for owners of older vehicles, raise questions about their alignment with ecological and economic goals.

📈 Key Aspects:
1. Planned Changes:
• A 30% reduction in the tax rate for vehicles older than 10 years.
• A 50% reduction for vehicles older than 20 years.
2. Environmental Challenges:
• In Almaty, 60% of CO₂ emissions come from vehicles, many of which are outdated and do not meet modern environmental standards.
• Reducing taxes on old vehicles could conflict with Kazakhstan’s goal of achieving carbon neutrality by 2060.
3. Economic Implications:
• The incentive to renew the vehicle fleet is weakening: 45% of cars in Kazakhstan are over 20 years old.
• Insufficient tax incentives hinder the development of the market for modern, environmentally friendly vehicles.
4. Potential Solutions:
• Abolishing the vehicle tax in favor of increasing fuel excise taxes, making the tax burden proportional to vehicle usage.
• Developing public transportation: expanding the metro in Almaty, launching and upgrading the LRT system in Astana, which could reduce emissions and improve mobility for residents.

💡 Conclusion:
The planned changes to tax legislation require a careful approach to minimize ecological and social risks. The government and experts must strike a balance between encouraging vehicle fleet renewal and ensuring transportation accessibility for the population.

📢 Read the full analysis on economyKZ.org, featuring the opinion of independent expert Yerlan Karimov.

https://economykz.org/?p=11480&lang=en

📊 Healthcare in Kazakhstan: New Opportunities for Business

Kazakhstan’s healthcare sector demonstrates steady growth and offers promising opportunities for businesses, including private investments, innovative solutions, and startups. By the end of the third quarter of 2024, the volume of services reached 945.3 billion tenge, reflecting the growing demand and the need to improve accessibility and quality of medical services.

📈 Key Growth Areas:
1. Hospital Organizations (50.7% of the market, 479.1 billion tenge):
• Need for specialized clinics and the adoption of innovative technologies.
• Potential for developing telemedicine, smart diagnostic solutions, and personalized treatment programs.
2. General Medical Practice (33% of the market):
• Opportunities for startups in family medicine, health mobile apps, and preventive services.
3. Social Services (3.6% with accommodation, 1.5% without accommodation):
• Shortage of services for elderly care, specialized nursing homes, and day centers.
4. Dentistry (5.7% of the market):
• Development of affordable dental clinics with transparent pricing and convenient booking systems.

🌍 Role of the Private Sector:
• Private organizations hold only 37.5% of the market, which is insufficient to meet growing needs.
• Investments in small and medium-sized medical companies, including laboratories and diagnostic centers, open up rapid growth prospects.

💡 Innovation as a Driver of Change:
• Development of solutions based on artificial intelligence, Big Data, and medical applications.
• Opportunities for personalized diagnostics, process automation, and remote health monitoring.

📢 Read the full analysis on economyKZ.org!

https://economykz.org/?p=11383&lang=en

📊 Education in Kazakhstan: New Horizons for Business

The education sector in Kazakhstan is experiencing rapid growth, offering significant opportunities for private investment and innovative solutions. In the third quarter of 2024, the total volume of services reached 1.27 trillion tenge, highlighting the high demand for quality educational services.

📈 Key Growth Areas:
1. General and Secondary Education — the leading segment (54.6%, 692.1 billion tenge):
• Opportunities to create private schools, tutoring centers, and online educational platforms.
2. Preschool Education (16.8%, 212.9 billion tenge):
• Development of modern kindergartens, early development programs, and interactive applications for children.
3. Higher and Postgraduate Education (9.6%, 122.3 billion tenge):
• Investments in private universities, retraining courses, and international cooperation programs.
4. Primary Education — a promising but underdeveloped segment (1.3%, 16.6 billion tenge):
• Development of specialized schools, particularly in rural areas.

🚀 Hidden Opportunities:
• Online Education: The segment accounts for only 12.7 billion tenge. Introducing digital platforms, online courses, and distance learning solutions could significantly expand this market.

🌍 Challenges and Solutions:
• The public sector dominates with a share of 78.6%, while the private sector accounts for only 20.7%. Increasing competition and diversifying offerings are essential steps to improving service quality.
• Raising the share of large enterprises in education (currently at 13.2%) through the creation of private school networks and campuses.

💡 Why Invest?
• Stable Demand: Population growth and interest in quality education guarantee long-term demand.
• Social Importance: Educational projects receive support from both society and the government.
• Flexibility of Formats: Both offline and online solutions allow businesses to choose optimal operational models.

📢 Read the full analysis on economyKZ.org!

https://economykz.org/?p=11420&lang=en

📊 Kazakhstan’s High-Emission Sectors: Challenges and Prospects for a Low-Carbon Transition

As one of the most carbon-intensive economies in the region, Kazakhstan faces the pressing need to accelerate decarbonization amidst a global climate crisis. High-emission sectors such as aviation, transport, metallurgy, and cement production significantly impact the country’s environmental sustainability but also hold substantial potential for transformation.

📈 Key Directions for Decarbonization:
1. Aviation:
• Sustainable aviation fuel (SAF) has the potential to reduce greenhouse gas emissions by up to 80%.
• Development of hydrogen and electric engines for short-haul flights.
• Creation of infrastructure to support the adoption of innovative fuel types.
2. Transport and Logistics:
• Expansion of electric trucks and hydrogen-powered vehicles.
• Implementation of “green corridors” for transit routes.
• Development of low-carbon railway networks, critical for Kazakhstan as a logistical hub in Eurasia.
3. Metallurgy and Cement Production:
• Active adoption of carbon capture, utilization, and storage (CCUS) technologies.
• Replacement of traditional fuels with renewable energy in production processes.
• Modernization of outdated facilities to improve energy efficiency.

🌍 Unique Opportunities for Kazakhstan:
• The country’s geological advantages make it ideal for CO₂ storage projects.
• Establishing special economic zones with tax incentives and subsidies for businesses investing in low-carbon technologies.
• Opportunities to attract major international partners for joint development of innovative solutions.

💡 Conclusion:
The transition to a low-carbon economy requires large-scale reforms, significant investments, and the consolidated efforts of businesses, the government, and the international community. By effectively leveraging its resources and geopolitical position, Kazakhstan has the potential to become a regional leader in green energy.

📢 Read the expert opinion of Kuanysh Beisengazin, Head of the Central Asia Project Office on Climate Change and Green Energy, on economyKZ.org!

https://economykz.org/?p=11364&lang=en

📊 The Probability of Imitation in Economic Models: Interpretation and Significance

Economic models, such as the input-output model (IOM), are essential tools for analysis and planning. However, the accuracy of their application and interpretation often becomes a subject of debate, especially when it comes to differences between actual and calculated indicators.

📈 Key Takeaways:
1. Core Concept of the IOM:
• The model illustrates how industries are interconnected through intermediate consumption and final production.
• Fundamental principle: Gross Output = Intermediate Consumption + Final Consumption.
2. Historical Significance:
• Developed by Wassily Leontief, the IOM was used during World War II for strategic planning in the United States, earning Leontief a Nobel Prize for his methodology.
3. Importance of Cost Coefficients:
• Direct cost coefficients highlight the interdependence of resources and products within an industry.
• Total cost coefficients analyze the entire production cycle, linking final consumption with total output.
4. Challenges in Interpretation:
• Discrepancies often arise between actual data and calculated values.
• Misinterpretation can lead to distorted conclusions and suboptimal decisions.
5. Risks of Imitation:
• Economists may occasionally exploit discrepancies between coefficients to give undue significance to their calculations, potentially misrepresenting real-world scenarios.

🌍 Practical Importance:
• The IOM aids in forecasting the resources required to scale up production.
• Considering factors like resource shortages is critical for accurate planning.

📢 Read the expert opinion of independent analyst Daulet Zhambaybekov on economyKZ.org!

https://economykz.org/?p=11301&lang=en

📊 Life Expectancy in Kazakhstan: Trends, Challenges, and Future Prospects

Between 2019 and 2023, Kazakhstan experienced significant changes in life expectancy. These metrics reflect the state of healthcare, the overall well-being of the population, and key factors influencing life expectancy dynamics.

📈 Key Statistics:
• Recovery Post-Pandemic: After a sharp decline to 70.38 years in 2021, the average life expectancy rebounded to 75.1 years by 2023.
• Gender Gap: Women live an average of 8.07 years longer than men, although this gap has narrowed from 8.25 years in 2019.
• Regional Differences: Southern regions like Turkestan have a higher life expectancy (74.9 years) compared to northern areas (73.1 years).

💡 Key Challenges:
1. Healthcare Deficiencies:
• Overburdened medical facilities in major cities.
• Limited access to healthcare services in remote areas.
2. Socio-Economic Conditions:
• Higher standards of living and better healthcare access in regions with higher incomes.
• Limited opportunities in less developed regions.
3. Environmental Risks:
• Air and water pollution directly impact population health.
• High mortality rates from respiratory diseases in industrial zones.

🌍 Factors Affecting Life Expectancy:
• Cardiovascular diseases remain the leading cause of mortality, accounting for over 50% of deaths.
• The COVID-19 pandemic exacerbated issues with access to planned medical care and increased mortality from chronic illnesses.

📢 Read the full analysis on the Economy KZ information portal at economyKZ.org!

https://economykz.org/?p=11229&lang=en

📊Kazakhstan’s Top Export Products: A Three-Year Overview

Between 2021 and 2023, Kazakhstan demonstrated remarkable export growth. The number of products with export volumes exceeding $1 million increased from 565 to 1,065, reflecting a 188% rise. These figures highlight the diversification of the economy and a shift toward processed goods.

💡 Key Export Sectors:
• Machinery: +228 new product categories.
• Chemical Industry: +77 categories.
• Metallurgy: +42 categories.
• Food Industry: +20 categories.

Top exported goods include:
• gasoline and diesel fuel;
• pasta and flour;
• chemical fertilizers and reagents;
• metallurgical products;
• canned fruits and compotes.

🌍 Main Export Markets:
• Russia: +469 new products.
• Turkey: +242.
• China: +173.
• Armenia: +209.
• Kyrgyzstan: +92.

📈 Regional Comparison:
• Kyrgyzstan increased its export positions by 63%.
• Armenia doubled its exports from 175 to 384 positions.
• Kazakhstan added 500 new positions, maintaining its leadership in the region.

💡 Challenges for Future Growth:
1. Expanding to new markets beyond neighboring countries.
2. Improving logistics infrastructure to support increasing volumes.
3. Ensuring product quality meets international standards.

📢 Read the expert opinion of independent analyst Yernar Serik on economyKZ.org!

https://economykz.org/?p=11186&lang=en

📊 Digitalization of State-Business Interaction: Opportunities of the egovbusiness.kz Portal

Creating a favorable and transparent environment for business operations is one of Kazakhstan’s key priorities. The new egovbusiness.kz portal aims to integrate all government services for entrepreneurs into a unified digital platform, ensuring accessibility and simplifying procedures.

💡 Key Features of the Portal:
• Single access point to all business services.
• “Entrepreneur’s personal account”, providing full analytics, such as tax history, licenses, and debts.
• Digital signature for legally significant operations.
• Proactive support: recommendations for government support measures based on competitiveness assessments.

📈 Advantages of Digitalization:
• Reduction of administrative costs through process automation.
• Increased transparency via access to analytical data.
• Simplified procedures for obtaining subsidies and benefits for small and medium-sized businesses.

🌟 Challenges and Prospects:
The main challenge is ensuring data accuracy and adapting users to the new system. However, the successful implementation of this project can not only simplify interactions between the state and businesses but also enhance the competitiveness of entrepreneurs in the market.

👉 Read the expert opinion of Eric Jambylov, Director of the Department of the Ministry of National Economy of Kazakhstan, on economyKZ.org.

https://economykz.org/?p=11057&lang=en

📊 Kazakhstan and Methane Emission Regulation: Challenges and Prospects

A year ago, Kazakhstan joined the Global Methane Pledge, committing to a 30% reduction in methane emissions by 2030. Achieving this goal largely depends on efforts in the oil and gas sector, which is a primary source of methane emissions.

🚀 Key Achievements:
• In December 2023, KazMunayGas JSC became the first Kazakh company to join the international OGMP 2.0 initiative to reduce methane emissions.
• The company has set a goal to achieve the “gold standard” of methane reporting across its operational assets within three years.

📈 Challenges and Solutions:
1. Lack of a unified approach: In 2023, methane emissions estimates ranged from 40 to 73 thousand tons, depending on the calculation methods used.
2. Need for advanced technologies: Plans include installing vapor recovery and gas capture systems with an efficiency rate of up to 95%.
3. Development of offset projects: Collaborative programs with international partners, such as Japan, open new opportunities for monetizing mitigation efforts.

🌍 Future Prospects:
• Aligning national methodologies with international standards.
• Creating a market for methane management technologies and services.
• Establishing emission threshold levels for various industries.

👉 Read the expert opinion of Aliya Shalabekova, Director of the Department at KazMunayGas JSC, on economyKZ.org!

https://economykz.org/?p=10958&lang=en

📊 School Meal Quality: Challenges and Solutions

Ensuring quality school meals in Kazakhstan remains a pressing issue. Despite a significant increase in state spending on school lunches (from 78.3 billion tenge in 2017 to 196.6 billion tenge in 2023), many students refuse free meals. This leads to inefficient use of food, which often ends up being wasted.

📈 Key Data:
• In Almaty, spending on school meals increased fourfold, reaching 41 billion tenge.
• In Almaty Region, spending tripled to 15.5 billion tenge.
• In East Kazakhstan Region, spending has remained almost unchanged due to low birth rates and population migration.

💡 Proposed Improvements:
1. Indexing meal costs to align with inflation levels.
2. Introducing a lunchbox distribution system in schools without canteens.
3. Conducting taste tests for parents and children to improve menus.
4. Piloting a buffet system in select schools.

👉 Read independent expert Yerlan Karimov’s insights on the website economyKZ.org!

https://economykz.org/?p=10891&lang=en

📊 Demographic Dynamics of Kazakhstan: Growth, Urbanization, and Challenges

As of October 1, 2024, Kazakhstan’s population reached 20 223 218 people, demonstrating steady growth despite recent challenges. However, the population distribution remains uneven: 63% reside in urban areas (12 704 977 people), while 37% live in rural regions (7 518 241 people).

🏙️ Regions with High Urbanization Levels:
• Karaganda region: urbanization at 81.9%.
• Ulytau: 79.3%.
• Aktobe region: 75.4%.

🌾 Regions with Low Urbanization Levels:
• Almaty region: only 19.5% of the population resides in urban areas.
• Turkestan region: 25.1%.
• Zhambyl region: 43.7%.

📈 Key Factors and Challenges:
• Urbanization attracts young and skilled workers to cities but requires significant investments in infrastructure, transportation, and housing.
• Regional Disparities: Rural areas are experiencing youth outmigration, reducing the labor force and lowering living standards.
• Gender Imbalance: Women outnumber men across the country, with 10 342 959 women and 9 880 259 men.

🌍 Strategic Priorities:
• Supporting rural infrastructure, developing the agricultural sector, and improving access to modern technologies.
• Creating conditions to retain residents in rural regions.

👉 Read the full analysis on the informational portal Economy KZ at economyKZ.org!

https://economykz.org/?p=10869&lang=en

EAEU Industry: Growth, Challenges, and Structural Changes

The industrial sector of the Eurasian Economic Union (EAEU) has shown steady growth in 2024, with production volumes increasing by 4.4% in the first nine months. Manufacturing industries continue to lead this growth, driving significant structural changes across the region. Meanwhile, the mining sector, though its share is gradually declining, remains a critical part of the industrial landscape.

Russia has demonstrated stable development, Kazakhstan is strengthening its manufacturing base, Armenia has achieved record growth through processing, while Belarus and Kyrgyzstan also contribute significantly to the region’s progress. Each member state plays a unique role in enhancing the EAEU’s industrial potential.

However, alongside these positive dynamics lie several challenges. These include the need for production modernization, strengthening the mining sector in certain countries, boosting inter-state cooperation, and implementing joint projects. Addressing these priorities is essential for ensuring sustainable and balanced growth across the EAEU.

Why is manufacturing emerging as the primary driver of change? How are EAEU countries adapting to global economic shifts? What areas require focused attention to ensure the region’s long-term success?

These questions and more are thoroughly analyzed by the expert. The article provides up-to-date data, structural analysis, and actionable recommendations for the future of the region’s industrial development.

Read Assan Alimbetov’s expert opinion and discover how the EAEU is transforming its industry and laying the foundation for sustainable growth. Learn more on the website

https://economy.kz/?p=10729&lang=en

Marriage and Divorce Dynamics in Modern Kazakhstan

🔛Overall Picture of Marriages
• In 2019, 139,504 marriages were registered in Kazakhstan.
• In 2020, during the pandemic, the number of marriages decreased to 128,839 (-7.6%), as COVID-19 restrictions significantly affected social events, including weddings.
• In 2021, the number of marriages rose again to 140,256 (+8.9% compared to 2020), showing a partial recovery after the crisis year.
• In 2023, 120,851 marriages were registered, which is 13.4% lower than in 2019.

🔈Divorce Dynamics
• In 2019, 59,796 divorces were recorded.
• In 2020, this figure dropped to 48,002 (-19.7%), primarily due to restrictions on movement and government agency operations, which complicated divorce procedures.
• In 2021, the number of divorces increased slightly to 48,239 (+0.5% compared to 2020).
• In 2023, divorces declined further to 40,227, which is 32.7% lower than in 2019 and 16.2% lower than in 2020.

☑️Marriage and Divorce Rates
• Marriage Rate:
• 2019: 7.5 per 1,000 people.
• 2020: 6.9 per 1,000 people.
• 2021: 7.4 per 1,000 people.
• 2023: 6.1 per 1,000 people, reflecting a declining popularity of official marriages.
• Divorce Rate:
• 2019: 3.2 per 1,000 people.
• 2020: 2.6 per 1,000 people.
• 2021: 2.5 per 1,000 people.
• 2023: 2.0 per 1,000 people.

♦️Regional Differences
• Turkistan Region:
• In 2023, 11,818 marriages were registered, accounting for 9.8% of all marriages in the country, demonstrating the region’s traditional inclination for high marriage rates.
• Divorces: 1,887 cases, linked to cultural and religious characteristics.
• Astana:
• 10,392 marriages were registered in 2023, influenced by demographic and socio-economic factors of the capital.
• Almaty:
• In 2023, 4,761 divorces were recorded (11.8% of all divorces in the country).

https://economy.kz/?p=10700&lang=en

📊 Investments in Kazakhstan’s State Assets: Analysis and Prospects

Investments in republican and communal property remain a cornerstone of Kazakhstan’s economic development. Between 2021 and 2023, total capital investments amounted to 21.4 trillion tenge, directed toward modernizing infrastructure, improving housing stock, and adopting new technologies.

🏢 Key Figures:
• Republican Property: 8.1 trillion tenge, with a record volume of 3.4 trillion tenge in 2023.
• Communal Property: 13.2 trillion tenge, despite a decline in investment volumes in recent years.

🏗️ Main Investment Areas:
• Buildings and structures: Over 4 trillion tenge in 2023.
• Machinery and equipment: 3.2 trillion tenge invested in communal property.
• Housing stock: 667.4 billion tenge to improve living conditions for citizens.

🌍 Challenges and Issues:
• Instability in investment dynamics.
• Regional disparities: The largest share of investments is concentrated in major cities.
• The need for flexible resource allocation to ensure sustainable development.

👉 Learn how investments are driving Kazakhstan’s economic modernization and what reforms are needed to boost them — full article available on our website!

https://economy.kz/?p=10622&lang=en

📊 Shadows of Agglomeration: How Megacities Impact Neighboring Regions

Agglomeration is a phenomenon where large cities concentrate resources, people, and capital, influencing the development of adjacent areas. Historical research by Richard Hornbeck, Guy Michaels, and Ferdinand Rauch demonstrates that this is not a new process: similar effects were observed in ancient times, such as in Mediterranean port cities.

🌍 Key Findings of the Study:
• Large cities benefit from economies of scale, enhancing productivity and fostering innovation.
• However, resource concentration suppresses economic activity in surrounding regions, limiting their growth potential.
• Balanced regional development strategies are essential to mitigate these adverse effects.

📈 Modern Parallels:
Cities like New York and London continue to centralize economic activity, leaving neighboring regions in their shadow. This calls for innovative approaches to stimulate growth in suburban and rural areas.

👉 Read the full analysis and expert insights from Aitjan Meirembayev on our website!

https://economy.kz/?p=10655&lang=en

📈 Kazakhstan’s Industrial Growth in 2024: Achievements and Key Challenges

From January to October 2024, industrial production in Kazakhstan increased by 2.6%, reaching 40.4 trillion tenge. This growth was driven by a rise in manufacturing (+4.8%) and stability in the mining sector (+0.3%). However, regional disparities and limited diversification remain significant challenges.

🏭 Key Growth Sectors:
• Chemical Industry: +8.9%.
• Pharmaceuticals: +23.8%.
• Metallurgy: +7.5%.
• Manufacturing of Metal Products: +29.3%.
• Energy Sector: Volumes increased by 4.9%, supported by transmission and distribution of electricity.

🌍 Regional Dynamics:
The highest industrial growth was recorded in Ulytau, Karaganda, and Turkestan regions. Meanwhile, declines were observed in Atyrau and Kostanay regions, as well as in Almaty, highlighting the need to balance regional development.

⚙️ Key Challenges:
1. Reduction in Water Supply: Volumes decreased by 1.2%.
2. Regional Disparities: Growth in some regions is offset by declines in others.
3. Dependence on the Mining Sector: Limits economic resilience and diversification.

👉 Read the full report on Kazakhstan’s industrial achievements and key challenges on our website!

https://economy.kz/?p=10599&lang=en

📊 Trends in Higher Education in Kazakhstan: Key Directions and Challenges

Kazakhstan’s higher education system continues to evolve, addressing modern demands and student preferences. According to the Bureau of National Statistics for 2023, the total number of students reached 592.7 thousand, with 65% studying in Kazakh and 54% opting for private universities. These figures highlight the growing interest in flexible and modern educational models.

🎓 Key Trends:
1. Increasing Popularity of Private Universities: The number of students in private institutions has grown by 10.4% over the past five years, demonstrating their competitiveness.
2. Decline in the Number of Universities: Over the past five years, the number of universities has decreased by 9.6%, reflecting stricter quality controls and a reduction in dropout rates.
3. Teacher Workload: In Shymkent, one teacher accounts for 24 students, while in North Kazakhstan and Turkestan regions, this figure is 12 students per teacher.
4. Popular Fields of Study: Engineering, education, and medicine remain the most sought-after fields among young people.

🌐 Digitalization in Education: Despite the overall growth in technology adoption, access to computers in the educational process remains limited in some regions, such as North Kazakhstan, where the figure is only 57%.

👉 Read expert insights from Yerlan Karimov on how Kazakhstan’s higher education system is adapting to modern challenges and what lies ahead — full article available on the website!

https://economy.kz/?p=10550&lang=en

🌍 Climate Change on Earth: 485 Million Years of Temperature Fluctuations and Their Impact on the Future

Recent studies by the Smithsonian Institution and the University of Arizona reveal how fluctuations in atmospheric carbon dioxide (CO2) levels over millions of years have had a significant impact on Earth’s temperature. The findings show that during periods of high CO2 concentrations, global temperatures were 15–20 degrees higher than today, leading to profound transformations in ecosystems and widespread extinctions.

📉 Key Findings of the Study:
• Serious Threats to Modern Ecosystems: The rate of warming caused by current anthropogenic greenhouse gas emissions far exceeds historical levels. Such rapid climate shifts pose a risk to ecosystems, threaten species diversity, and may lead to more frequent and severe climate anomalies.
• Risk of Mass Extinctions: Analysis shows that sudden temperature surges in the past were often associated with mass extinction events. Given that today’s warming rate may be unprecedented over the last several hundred million years, there is an increased risk of similar outcomes for modern biodiversity.
• Understanding Climate History: Studying ancient climate cycles provides valuable insights for predicting and mitigating contemporary ecological disasters. Scientists note that while climate equilibrium in ancient times could take thousands of years to restore, current human-induced changes demand swift action.

👉 Read expert insights from Baltabay Syzdykov on how understanding ancient climate cycles can help humanity foresee risks and take sustainable measures to prevent future ecological catastrophes — full report available on our website!

https://economy.kz/?p=10496