Poverty declines as Kazakhstan moves to upper-middle-income status - World Bank report
According to World Bank report, Kazakhstan has achieved remarkable economic growth and poverty reduction over the past two decades, but regional disparities and reliance on commodities remain key challenges, Kazinform News Agency correspondent reports.
Between 2006 and 2021, the economy grew at an annual rate of 4.7%, with GDP per capita increasing from 548,912 to 791,285 tenge. Household consumption also surged from 279,891 to 500,529 tenge per capita.
“As poverty fell and living standards rose, the country transitioned from lower-middle-income to upper-middle-income status,” reads the report.
The poverty rate dropped significantly, with 5.9 million people lifted out of poverty. The reduction happened in three phases:
1) Rapid decline (2006–2013): The poverty rate fell dramatically, from 49.5% to 11.1%.
2) Reversal (2014–2016): An economic downturn caused the incidence of poverty to rise to 20.2% (an 82% increase).
3) Gradual decrease (2016–2021): After 2016, poverty slowly declined, reaching 8.5% by 2021.
Key factors driving poverty reduction included higher labor incomes, expanded government transfers, and increased pensions. Rural areas saw a dramatic poverty reduction from 60.4% to 11.4%. However, disparities persist, particularly in the Turkistan region, where the share of the poor population increased from 14.4% to 24% during this period.
The middle class expanded to 67% of the population, but its growth stagnated after 2013 due to slow productivity and reliance on commodity exports. Income inequality remains relatively low compared to other upper-middle-income countries, though it has increased slightly since 2016.
According to the report, the demographic profile of poverty in Kazakhstan has shifted, with poor individuals now more likely to be younger, less educated, and from larger families. While all groups benefited from the overall poverty reduction between 2006 and 2021, child poverty rates dropped significantly from 62% to 13%.
However, children’s share of the poor population increased from 27% to 40%. Similarly, poverty among households with three or more children fell from 82% to 19%, yet these households now make up about 44% of the poor population.
