Kazakhstan’s oil refining industry is set to increase its GDP contribution, with a 7 percent growth target by 2025. January output exceeded expectations, and future expansion projects are planned to enhance refining capacity. Agricultural and trade sectors require improvement, and the government emphasizes efficient budget utilization to boost the economy.
Kazakhstan’s oil refining industry is showing promising growth, with the potential to enhance its contribution to the national GDP, stated Minister of National Economy Serik Zhumangarin during an Economic Growth Headquarters meeting. The government aims for a GDP growth of 7 percent for 2025, following a 4.8 percent actual growth in 2024, contingent upon effective investment project implementations in the real economy sector.
In January, the oil refining output reached 1.53 million tons, reflecting a 104 percent increase compared to the same month last year, and surpassing the 2025 target by 0.6 percent. The completion of the CaspiBitum LLP expansion is expected to boost refining capacity from 1 million tons to 1.5 million tons, increasing Kazakhstan’s total refining capability to 18.5 million tons by 2026.
Serik Zhumangarin raised concerns about the efficiency of large and mini oil refineries. He expressed optimism regarding the industry’s prospects, remarking that without significant external disruptions, there is a valid opportunity to enhance its contribution to the GDP this year. Furthermore, the performance of the agricultural and trade sectors was evaluated, noting underachievement against set targets.
The Deputy Prime Minister directed focus on improving the utilization of budgetary investments in the region, calling for a review of all urgent funding projects based on their potential to positively impact the real economy. As of now, the oil refining sector accounts for less than 1 percent of Kazakhstan’s GDP, specifically, 0.8 percent for 2023 and 0.6 percent for the first three quarters of 2024.
Kazakhstan’s oil refining sector is experiencing notable growth, exceeding production targets and aiming to enhance its GDP contribution. The government’s focus on effective investment implementation and expansion projects is central to achieving a target GDP growth of 7 percent by 2025. Attention to agriculture and trade, alongside budgetary project optimization, remains vital for overall economic performance.
Original Source: en.trend.az
