Kazakhstan’s oil refining industry is projected to increase its GDP contribution, with a target growth of 7 percent by 2025. Oil refining output in January rose to 1.53 million tons, surpassing last year’s figures and contributing to an increased refining capacity. However, concerns have been raised regarding performance in other sectors, prompting calls for strategic reviews of investment projects.
Kazakhstan’s oil refining sector is on an upward trajectory, as stated by Minister of National Economy Serik Zhumangarin during a meeting of the Economic Growth Headquarters. The Minister indicated that the sector is poised to enhance its contribution to the nation’s GDP. He also mentioned a projected GDP growth of 4.8 percent in 2024, with an ambitious goal of 7 percent by 2025, contingent on prompt execution of investment projects in the real economy.
In January, oil refining reached 1.53 million tons, marking a 104 percent increase compared to the same month last year, and 0.6 percent above the initial target for 2025. Following the completion of the CaspiBitum LLP expansion in late May 2025, Kazakhstan’s total refining capacity will increase from 18 million tons to 18.5 million tons by 2026, increasing the overall capability in the sector.
Serik Zhumangarin expressed optimism regarding the oil refining industry’s potential to uplift its GDP contribution this year, provided that significant external adversities do not arise. Discussions during the meeting also highlighted the necessity to improve performance indicators in agriculture, trade, and fishing sectors for the Mangistau region, where January results fell short of their respective targets, demanding urgent corrective actions.
The meeting underscored the need for a strategic reassessment of budgetary investment projects, particularly focusing on their potential impact on the real economy sector. Current data indicates that oil refining’s contribution to Kazakhstan’s GDP remains relatively modest, recorded at 0.8 percent for 2023 and 0.6 percent in the first nine months of 2024.
In conclusion, Kazakhstan’s oil refining industry is set for growth with increased capacity and positive projections for GDP contributions. Minister Serik Zhumangarin’s aspirations for significant economic targets hinge on effective implementation of investment projects. However, low performance in agriculture and trade sectors necessitates immediate attention to meet the planned economic goals, addressing challenges in budget utilization and overall sector performance.
Original Source: en.trend.az
