Kazakhstan has unveiled a new economic strategy targeting inflation reduction to a range of 5% to 7% within the next few years. This goal forms a central part of an updated Comprehensive Plan designed to raise household incomes and improve job quality across the country.
The plan, spanning 2026 to 2029, focuses on increasing household incomes by 2 to 3 percentage points above inflation and generating up to 240,000 quality jobs annually. It replaces an earlier program initiated in 2022 and contains 59 specific measures concentrated in six key sectors aimed at elevating living standards and boosting productivity.
Addressing labor inefficiencies remains a challenge for Kazakhstan. According to government officials, labor productivity in the country lags significantly behind European Union levels, particularly in rural regions where unstable employment is common. To tackle these issues, the plan includes launching 17 cluster projects and new agricultural investment programs aimed at fostering cooperatives and supporting small businesses. Additionally, expanding microcredit access will target over 30,000 loans in rural areas, easing financial constraints for households and entrepreneurs.
Education reforms are also a priority, with plans to broaden dual education programs to align skills development more closely with labor market needs. A key objective is to boost agricultural labor productivity, thereby lowering the proportion of household expenditures on food to 40%, which currently represents a sizable share of consumer spending.
The National Bank of Kazakhstan recently reported slowing inflation trends. Monthly inflation slowed to 0.7% in May from 0.8% in April, with core and seasonally adjusted inflation also reducing to 0.7%. Annual inflation fell to 10.4% at the end of May, down by 2.5 percentage points from its previous peak of 12.9% in September last year. Projections indicate inflation will stand between 9% and 11% during 2026, before decreasing to 5.5% to 7.5% by 2027, and edging closer to the 5% target in 2028.