World Bank study shows great enthusiasm from Kazakhstan’s population

Kazakhstan's economy came through 2023 resiliently, despite the challenges it faced. With real economic growth of 4.9%, the country demonstrated its ability to maintain positive momentum, even in an uncertain global environment. This growth testifies to the robustness of the Kazakh economy, and their ability to adapt to ever-changing conditions.

70% of the Kazakh population are satisfied with their living conditions

One of the highlights of the year was the steady decline in the inflation rate, from 21.3% in February to 9.8% at year-end. Although significant, this decline also underlined the ongoing efforts needed to stabilize prices and ensure long-term economic stability. In December 2023, some 57% of households reported positive economic conditions in their locality.

We note remarkable optimism about the country's long-term economic trends: 70% of households said they were satisfied with their living comfort. Better still, around three-quarters of those surveyed expressed confidence in Kazakhstan's long-term economic trajectory, a proportion that remained stable throughout the year.

This optimism is a valuable indicator of people's confidence in the country's institutions and economic policies, especially among young people aged 18 to 24, 83% of whom are enthusiastic.

Support for government reforms has also been strong, reaching 67% in 2023. This endorsement reflects a collective willingness to embrace change and work together to stimulate economic growth, as well as improve people's living conditions. It also reflects citizens' confidence in the government's ability to respond effectively to economic and social challenges.

What the public would like to see improved

Despite these great successes, challenges remain, particularly concerning the labor market and household financial well-being.

Confidence in the labor market declined in the final quarter of 2023, with fewer respondents feeling that now was the right time to look for a job; down from 50% in September to 42% in December. The same is true of business start-ups: although the trend is higher than in 2021 and 2022, it has fallen from 49% in September to 39% in December 2023.

For Peers, these figures underline the importance of implementing policies to stimulate job creation, and strengthen the economic security of workers.

Similarly, concerns remain about the financial well-being of households in the poorest classes. Around a quarter of these households feel unable to cover emergency expenses. This is a situation that preoccupies Kazakhs: 92% are concerned about income inequality, as are 86% about wealth inequality.

These issues do not detract from the country's dynamism, according to Metin Nebiler, Economist and Team Leader for the Poverty and Equity Global Practice of the World Bank in Kazakhstan: "We found it very encouraging to see that overall well-being of Kazakhstan has been improving. The views on the outlook and the government's performance are stable or trending positively".

A good omen for 2024?