WOOD Flash – Kazakhstan macro: State of the Nation Address sets grounds for new constitutional reform and ambitious digitalisation agenda

In his annual State of the Nation Address this week, President Tokayev outlined a renewed vision for the country and the priorities for the years ahead. Unlike the relatively consistent themes of his last three addresses since 2022, this year’s speech marked a shift. The speech placed heavy emphasis on artificial intelligence and digitalisation, coupled with a renewed drive for institutional reform. Macro stability was given due attention, although geopolitics remained largely minor, with statements deliberately calibrated. What grabbed headlines was the proposal to move towards unicameralism – on which we will elaborate later in this flash note. On the economic front, we see some constructive developments. Inflation was underscored as a pressing problem, with the President calling on the executive and the NBK not to be afraid of unpopular measures. On the banks, the tone was somewhat softer than in recent years. The emphasis on investment and digitalisation is a strategic move to boost productivity and growth. However, as with past reform plans, the real challenge will be Kazakhstan’s ability to implement these ambitious goals effectively.