Kazakhstan: A New Economic Partner for Latvia? Growth and Investment Opportunities
Kazakhstan's economy grew by 6.5% in 2025, and the country is attracting increasing EU investment. Latvia could benefit from cooperation in logistics, digital economy, and transit.
Kazakhstan has shown rapid economic growth in recent years. In 2025, its GDP grew by 6.5% to over $306 billion, compared to a global average of about 3%. The country’s debt is low at 22.8% of GDP ($73 billion).
The economy is diversifying: the oil sector’s share of GDP fell from 16.5% in 2010 to 8.1% in 2025, while manufacturing, high-tech, and services are growing. The European Union is Kazakhstan’s largest trade and investment partner. In 2025, bilateral trade exceeded $45 billion, and nearly half of all foreign direct investment comes from EU countries. About 4,000 European companies operate in Kazakhstan.
A key project is the Trans-Caspian International Transport Route, or Middle Corridor, connecting Europe, the Caucasus, Central Asia, and China. Freight traffic on this route increased fivefold over six years to 4.1 million tons annually. Kazakhstan has invested over $35 billion in transport infrastructure, aiming to boost capacity to 10 million tons. The EU considers this a flagship project under its Global Gateway initiative.
Kazakhstan is also advancing its digital economy. In June, the Digital Qazaqstan strategy for 2029 was approved, focusing on AI and computing infrastructure. Together with US firms Firebird and NVIDIA, a $10 billion Data Center Valley project is underway, expected to generate over $3 billion in export revenue annually.
For Latvia, these developments offer opportunities in logistics, digital services, and investment. The economies of Latvia and Kazakhstan complement each other: Kazakhstan gains access to European technology, while European companies gain new markets and transport routes.
