Accounting for 24% of the country's GDP and 12% of its population in 2016, Almaty is Kazakhstan's foremost economic Centre. Despite losing its capital status to Astana in 1997, Almaty remains the largest city in Kazakhstan, and still is a major commercial and cultural centre of Kazakhstan. Being an important strategic point of trade and logistics in Central Asia, 91% of the city's GVA is derived from services, with commerce being the backbone of Almaty's economy.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
The economy of Almaty is very service sector-orientated, with 91% of its GVA coming from commerce, business services and public services. Being the centre of higher value-added sectors, Almaty also boasted a 108% higher productivity level compared to the rest of the country, in 2016. Commerce greatly benefits from the city's convenient geographic location and the availability of supportive infrastructure.
Higher productivity in Almaty does translate into a higher annual level of per-household disposable income in the city, which surpassed the average for the rest of the country by 40% in 2016. This is partly impacted by the city's smaller household size and lower labour force participation rate compared with elsewhere in Kazakhstan.
Along with higher disposable income, households in Almaty recorded 45% higher consumer spending per household (excluding housing and transportation) in 2016. Compared with the rest of Kazakhstan, the greatest difference in spending were in the education (65% greater spending in the city) and hotels and restaurants (+115%) categories.
In 2016 expenditure on housing and transport was 47% greater in Almaty compared to the rest of the country. Of the two, transport demanded as much as 57% more expenses compared with the rest of the country. Despite Almaty having an advantage in disposable income, Almaty is regarded as a rather unaffordable city given the excessive housing and transportation costs.