ASTANA, Kazakhstan, December 29. In 2025,
Kazakhstan embarked on a series of significant reforms across both
its political and economic systems, marking a pivotal year of
transformation. The country simultaneously advanced deep
institutional reforms, recalibrated its economic policies, and
enhanced its standing on the international stage.
A central political development was the proposal to transition
Kazakhstan’s Parliament into a unicameral legislature. This
initiative, presented by President Kassym-Jomart Tokayev in his
address to the nation on September 8, aimed at simplifying the
governance structure and streamlining decision-making processes. By
October, a dedicated working group had been formed to examine the
proposal and work towards its implementation.
Concurrently, Kazakhstan made notable progress in its digital
sector. On September 18, the Ministry of Digital Development,
Innovations, and Aerospace Industry was restructured and renamed as
the Ministry of Artificial Intelligence and Digital Development,
signaling the country's commitment to advancing its digital
transformation.
In December, the adoption of the Digital Code by Parliament
introduced a comprehensive legal framework for managing data
governance, digital platforms, smart contracts, and cybersecurity.
Awaiting the president’s signature, the Code aims to eliminate
regulatory fragmentation, offering clarity and cohesion for both
public institutions and private sector entities operating in the
digital economy.
Additionally, the opening of the Alem.AI International Center
for Artificial Intelligence in October reinforced Kazakhstan’s
focus on becoming a regional leader in AI research, startups, and
international cooperation.
From a macroeconomic standpoint, 2025 witnessed a notable
divergence between output growth and price stability. Economic
performance exceeded expectations, largely driven by robust
consumer spending, strong investment demand, and
higher-than-anticipated oil exports. As a result, GDP growth
reached 6.4% in the period from January to November, prompting the
National Bank of Kazakhstan (NBK) to revise its full-year growth
forecast upward, projecting a range of 6.0% to 6.5%.
Despite this positive economic momentum, inflationary pressures
remained elevated. By September 2025, annual inflation had surged
to 12.9%. In response, the central bank adopted a more restrictive
monetary stance, raising the base rate to a historic 18% on October
10, which was subsequently maintained through November 28.
In its latest report, the National Bank forecasted that
inflation would likely remain within the range of 12.0% to 13.0%
for the remainder of 2025. It further projected a gradual
deceleration in the inflation rate, anticipating a reduction to
9.5%–12.5% in 2026, and a further decline to 5.5%–7.5% by 2027.
The strong performance of 2025 has also shaped expectations for
subsequent years. Due to the high base effect and the anticipated
impact of fiscal and tax reforms, the NBK revised its GDP growth
forecast for 2026 downward to 3.5-4.5%. Growth in 2027 is projected
at 4.0-5.0%, supported by continued investment expansion, moderate
consumer demand, and sustained oil production.
Moreover, structural reforms remained central to the
government’s economic strategy. The new Tax Code, signed by
President Tokayev on July 18 and set to take effect in 2026,
introduced changes to corporate and personal income taxes,
investment incentives, and the redistribution of the tax burden.
The establishment of a 16% VAT rate, alongside reduced rates for
socially sensitive sectors, reflects an attempt to balance fiscal
sustainability with social considerations.
Furthermore, in the financial sector, amendments to the Banking
and Banking Activities Law, adopted on December 29, aimed to
strengthen regulatory oversight and enhance system resilience.
These measures align with the broader objective of safeguarding
macroeconomic stability amid tightening monetary conditions.
Another significant step was the proposal made by President
Kassym-Jomart Tokayev on September 8, 2025, in his Address to the
Nation, to create a State Digital Asset Fund based on the National
Bank's Investment Corporation. This fund would accumulate a
strategic cryptocurrency reserve composed of the most promising
assets in the new digital financial ecosystem.
Furthermore, the Alem.AI International Center for Artificial
Intelligence opened in Astana on October 2, 2025, during the
Digital Bridge 2025 forum. This center is set to become a key
platform for research, startups, and international cooperation in
the AI field, positioning Kazakhstan as a future hub for AI
innovation in Central Asia. It reflects the country's ambition to
not only adopt new technologies but also take a leadership role in
shaping the future of artificial intelligence in the region.
Additionally, the creation of the special status for Alatau City
was a pivotal step in Kazakhstan’s regional development strategy.
On September 29, 2025, President Tokayev signed a decree granting
Alatau City special status. On December 26, 2025, the Ministry of
National Economy published a draft Constitutional Law on Alatau’s
special status, setting the stage for the city’s rapid development
under a separate legal and economic framework. This initiative aims
to create a "self-sustaining ecosystem," focusing on advanced
construction standards, investment protection, and a robust digital
infrastructure. It’s an ambitious plan that could redefine urban
development in Kazakhstan.
In 2025, Kazakhstan's foreign policy activity reached a new
level of prominence. The country played host to a series of
high-profile international visits, including those of President
Ilham Aliyev of Azerbaijan, Prime Minister Giorgia Meloni of Italy,
UN Secretary-General António Guterres, President Masoud Pezeshkian
of Iran, and President Alexander Stubb of Finland. These visits
reflect Kazakhstan's increasingly influential diplomatic standing
and underscore its active participation in shaping both regional
and global policy discussions.
The geography of President Tokayev’s foreign visits in 2025 also
reflects the broadening of Kazakhstan's national interests. In
2025, Tokayev visited the United Arab Emirates, Jordan, Uzbekistan,
Kyrgyzstan, and China. His September trip to New York for the 80th
session of the UN General Assembly underscored Kazakhstan’s active
role in international diplomacy. He also attended the 12th Summit
of the Organization of Turkic States (OTS) was held on October 7,
2025, in Azerbaijan’s Gabala. Tokayev's November visit to Russia
also reaffirmed the continued importance of Kazakhstan’s strategic
partnership with its neighbor. The December trip to Japan marked
Tokayev's first official visit to Tokyo, strengthening bilateral
ties in the context of the "Central Asia + Japan" summit.
These diplomatic engagements underscore Kazakhstan's growing
international visibility and its strategic efforts to cultivate
balanced relations with key global powers. This approach, I
believe, is essential for ensuring long-term stability while
promoting economic diversification.
Such initiatives signal Kazakhstan's deliberate positioning on
the global stage. There is little doubt that the country is seeking
to broaden its network of partnerships, aiming to play a more
active and influential role in global affairs, an objective that
will undoubtedly shape its future trajectory.
In conclusion, 2025 marked a year of deliberate and measured
progress for Kazakhstan, characterized by a combination of
economic, political, and digital transformations alongside an
expanded international presence. Rather than pursuing rapid
liberalization or expansive growth strategies, Kazakhstan has
focused on consolidating its reforms, strengthening governance, and
affirming its role as a stable, forward-thinking actor on the
global stage. The country is clearly positioning itself for
sustained growth and increased influence in the years ahead.
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