ASTANA, Kazakhstan, December 13. A new World Bank report highlights measures to boost inclusive growth in Kazakhstan, Trend reports.
A new World Bank report highlights Kazakhstan’s progress in reducing poverty and the challenges ahead for inclusive growth, stressing that the pace of poverty reduction has slowed in recent years despite significant advances since the early 2000s. According to the “Kazakhstan - Poverty and Equity Assessment 2024” report, making fiscal policy more pro-poor, improving the quality of education, and strengthening climate resilience are critical priorities for policymakers in order to reduce poverty and inequality in Kazakhstan.
Kazakhstan’s economy has grown robustly since 2006, with an average annual growth rate of 4.7 percent. This growth has increased incomes and living standards, transitioning the country to upper-middle-income status. These gains lifted 5.9 million people out of poverty, reducing the poverty rate from 49.5 percent to 8.5 percent in the same period.
“From 2006 through 2021, economic advancement significantly improved living standards and reduced poverty rates in Kazakhstan. Economic growth has slowed since 2014, and the pace of poverty reduction has fallen. The COVID-19 pandemic exacerbated these challenges, highlighting the need for resilient and inclusive economic strategies presented in this report,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan.
Since 2006, the middle class, defined as households with a low probability of falling into poverty, has increased 2.5-fold to reach 67 percent of the population in 2021, up from 26 percent in 2006. However, the expansion of the middle class has stagnated since 2013, as structural transformation and productivity growth have slowed.
Despite nationwide progress, significant disparities persist. Poverty rates in rural areas (11.4 percent) remain higher than in urban centers (6.6 percent), and the Turkistan region now accounts for a disproportionate share of the poor population. Moreover, poverty has become more concentrated among children and large families, with children now comprising 40 percent of the poor, up from 27 percent in 2006.
The report also highlights trends in income inequality. While the Gini index remains relatively low compared to other upper-middle-income countries, it rose from 24.3 in 2015 to 26.4 in 2021, driven by faster income growth among high-income households.
To note, in economics, the Gini coefficient, also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income inequality, the wealth inequality, or the consumption inequality within a nation or a social group. It was developed by Italian statistician and sociologist Corrado Gini.
