Head of State commissions to accelerate reconstruction of Astrakhan-Mangistau water supply line
Many rural settlements of Atyrau region are in urgent need of a centralized water supply system, due to wear and tear of the existing infrastructure.
Today, at the meeting with the public of Atyrau region, Head of State Kassym-Jomart Tokayev commissioned to speed up the reconstruction of Astrakhan-Mangistau water supply line, Kazinform learned from the Akorda press office.
Many rural settlements of Atyrau region are in urgent need of a centralized water supply system, due to wear and tear of the existing infrastructure. People have to stand in queues for clean water. Water purification facilities in Atyrau and Makat district need to be restored. Drinking water shortage in the region may reach 40% in the nearest five years. Therefore, the Government and the regional akimat must give serious attention to the modernization of the water supply system. The reconstruction of Astrakhan-Mangistau water supply line should be accelerated," said Tokayev.
The Government has to boost the talks with the banks and financial institutions on the construction of a new water supply line from the Volga River, he added.
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Kazakhstan’s Oil Production Rises to 100 Million Tonnes Per Year
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Kazakhstan’s annual oil production has increased from 80 million tonnes to 100 million tonnes over the past decade, a correspondent reports.
Growth was uneven, with declines in 2020-2021 due to the pandemic and OPEC+ production restrictions. However, in the long-term trend, Kazakhstan has strengthened its position," the Energy Analytics Telegram channel said.
According to the report, the key drivers behind the increase in oil production have been the country’s major energy projects - Tengiz, Kashagan and Karachaganak.
The increase has been particularly noticeable since 2016, when production rose from 78 million tonnes in 2016 to 86 million tonnes in 2017 (...) Kazakhstan has managed not only to maintain production levels but also to reach a new record high of around 100 million tonnes in 2025," the report said.
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OPEC+ to Increase Oil Production in July
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OPEC+ countries have agreed to increase oil production by 188,000 barrels per day. The adjustment will take effect in July 2026.
According to the published communiqué, the production increase will apply to Kazakhstan, Russia, Saudi Arabia, Iraq, Kuwait, Algeria and Oman.
Kazakhstan's production target has been set at 1.608 million barrels per day. Saudi Arabia's quota will amount to 10.353 million barrels per day, while Russia's production target has been set at 9.824 million barrels per day.
The next meeting of participating countries is scheduled for July 5.
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Kazakhstan to Build Its First Sanitary Ware Manufacturing Plant
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Kazakhstan is set to establish its first plant for the production and assembly of sanitary ware and bathroom accessories. The project will be implemented by Spanish company Roca Group, Kazakhstan’s Ministry of Foreign Affairs reported.
The project will involve investments of 44.1 billion tenge. Once operational, the facility will be capable of producing up to 500,000 units annually and is expected to create around 300 permanent jobs.
Gabidulla Ospankulov, Chairman of the Investment Committee of Kazakhstan’s Ministry of Foreign Affairs, met with company representatives to discuss the progress of the project.
During the meeting, Ospankulov outlined the government support measures available to investors, including tax incentives, and highlighted the advantages of doing business in Kazakhstan.
The ministry added that an investment agreement for the project has been signed by the Government of Kazakhstan, the administration of the Kyzylorda Region and Roca Group.
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National Bank Sees No Tenge Weakening After Base Rate Cut
Kazakhstan’s National Bank does not expect the tenge to weaken significantly following its decision to lower the base interest rate, National Bank Governor Timur Suleimenov said at a briefing, a correspondent reports.
We do not expect the tenge to weaken as a result of the change in the base rate. A 17% base rate preserves the attractiveness of tenge-denominated assets. In other words, it remains far more beneficial for people to invest in tenge assets than in foreign-currency assets. Accordingly, a one-percentage-point reduction will not alter the attractiveness of tenge assets, including bank deposits, corporate bonds, and government and quasi-government debt instruments. Therefore, we expect demand for tenge assets to remain at its current level, which means the exchange rate is unlikely to change significantly," Suleimenov said.
At the same time, the National Bank chief noted that the exchange rate may fluctuate under the influence of structural factors.
This is largely a matter of demand. At the beginning of the year, demand is usually lower because it takes time for budget funds to reach programme administrators and for them to announce various tenders. As a result, there is little demand for foreign currency during that period. Around this time of year, however, tender winners have typically been determined, and market participants begin purchasing US dollars. This seasonality is always present," he said.
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However, he stressed that the fundamental economic outlook remains favourable.
Oil prices are rising. Prices reflected in the metals index have also increased. In terms of foreign-currency earnings entering the market, the situation is positive. Unless there are external shocks, I see no grounds for any weakening of the national currency," the National Bank governor said.
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National Bank Cuts Base Rate to 17%
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The Monetary Policy Committee of the National Bank of the Republic of Kazakhstan has decided to set the base rate at 17.00% per annum with a corridor of +/- 1 percentage point. The decision is based on the results of the forecast round, updated assessments of key macroeconomic indicators, and the balance of inflation risks, nationalbank.kz reports.
Annual inflation continued to ease. In May, it stood at 10.4%, down by 2.5 percentage points from its peak of 12.9% in September last year.
Food inflation declined to 10.7%. This was driven by slower price growth for fruit and vegetables, socially important food products, and certain imported goods. Non-food inflation remained unchanged at 11.7%. This reflected the stronger tenge and signs of stabilizing consumer demand, including a moderation in consumer lending growth. Services inflation continued to decline, reaching 8.7%, mainly due to more stable demand and slower growth in utility tariffs.
Monthly inflation slowed to 0.7% in May, from 0.8% in April. Core inflation and seasonally adjusted inflation also declined to 0.7%.
One-year-ahead inflation expectations stood at 12.7% in May. Over the past two months, they have ranged between 12.4% and 12.7%. This marks an improvement from the period since mid-last year, when expectations had remained persistently above 13-14%. At the same time, regulated price reforms continue to play a significant role in shaping these expectations. Meanwhile, professional market participants’ inflation expectations for the end of 2026 remain unchanged at 10.0%.
Global food prices continue to rise moderately, driven by higher prices for vegetable oils, meat and cereals, while prices for sugar and dairy products are declining.
In Russia, inflation is showing signs of deceleration. In the EU and the US, the disinflation process has stalled amid persistently high energy prices. Against this backdrop, major central banks continue to take a cautious approach to monetary policy and emphasize their readiness to adjust policy if needed.
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The inflation forecast for 2026 has been revised down to 9-11%, from the previous range of 9.5-11.5%. The revision reflects a faster-than-expected actual decline in inflation, limited pass-through from the VAT increase to consumer prices, and the strengthening of the tenge. The National Bank expects inflation to move into single digits this year. This will be supported by moderately tight monetary conditions and joint measures with the Government to ensure macroeconomic stability. Inflation is projected to slow to 5.5-7.5% in 2027. In 2028, it is expected to stabilize close to the 5% target. This will be supported by a normalization of the external inflation environment, lower inflation expectations, a narrowing of quasi-fiscal stimulus, and fiscal consolidation.
The balance of risks to inflation remains tilted to the upside, although these risks have become less pronounced. At the same time, restrained domestic demand in the first half of the year and favorable external conditions, which supported the strengthening of the tenge, have partly offset accumulated pro-inflationary pressures. The main domestic risks stem from an acceleration in demand and expansion of monetary aggregates amid large-scale quasi-fiscal stimulus, volatile inflation expectations, and the actual execution of utility tariff and fuel price reforms. External risks are associated with persistent geopolitical tensions, which may increase external inflationary pressure and raise volatility in global markets.
The GDP growth forecast for 2026 has been revised up to 4.5-5.5%. The revision reflects stronger actual economic activity and more favorable oil price assumptions. GDP growth is expected to stand at 3.5-4.5% in 2027-2028. In the medium term, economic growth will be shaped by more balanced domestic demand and lower oil prices.
The slowdown in inflation achieved so far, together with the improved forecast, created room to reduce the base rate at this meeting. The decision reflects the accumulated improvement in inflation dynamics and the revision of forecast estimates.
At the same time, moderately tight monetary conditions need to be maintained. This is necessary to bring inflation down to single digits this year and to achieve the target in the medium term. Further decisions will be made based on incoming data on inflation, its trajectory relative to the forecast, domestic demand dynamics, the execution of fiscal parameters, and the scale and effects of quasi-fiscal stimulus.
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Kazakhstan Sows 20.9 Million Hectares During Spring Planting Campaign
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Kazakhstan Records Electricity Surplus in First Five Months of 2026
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Kazakhstan generated 53.6 billion kWh of electricity in January-May 2026, while domestic consumption totaled 53.3 billion kWh, resulting in an electricity surplus of approximately 300 million kWh, the Ministry of Energy reported.
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