Increased income often equates to increased expenditure?
In the heart of Central Asia, Kazakhstan is a nation where food expenses account for a staggering 56% of the total budget, a figure significantly higher than that of Europe (10-12%). This high percentage leaves less for non-food items and services that contribute to overall quality of life.
Amidst this scenario, the phenomenon of lifestyle inflation looms large. As workers experience an increase in wages, their expenses tend to rise in tandem, often fuelled by non-essential purchases. This trend, known as lifestyle inflation, has become a relevant concern in Kazakhstan.
However, there's a silver lining. The head of the Association of Exchange Offices has highlighted a frequently overlooked investment tool for profitable savings: online brokerage platforms and stock trading apps. These digital tools offer access to a wide array of investment products, including stocks, ETFs, CFDs, forex, and commodities, both locally and globally.
Reputable online brokers such as Interactive Brokers, XTB, TradeStation Global, Swissquote, and Admirals are readily available for Kazakhstanis. Notably, XTB, one of the best stock trading apps in Kazakhstan for 2025, is a popular choice among investors seeking to tap into global markets and various asset classes beyond traditional savings methods.
Despite the boom in the mining sector and foreign direct investment due to modernization, strategic partnerships, and infrastructure improvements, the personal retail investment segment in Kazakhstan stands to benefit greatly from digitalization in brokerage services, an area that remains underexplored by many local retail investors.
The rise in debt among the most affluent, from 8.5% to 10%, underscores the need for Kazakhstanis to explore alternative means of saving profitably. On the other hand, among the least affluent, spending on cafes and restaurants decreased from 1.2% to 0.8%, suggesting a shift towards more conscious spending.
Financial experts advise that the primary challenge for most workers in Kazakhstan is managing basic expenses. As a result, while earnings increase, the feeling of financial scarcity persists. However, almost half of respondents in a National Bank survey believe that "now is the right time" to start saving.
In the face of lifestyle inflation, where salary increases do not necessarily translate into savings or debt repayment, adopting and expanding the use of online investment tools could be a key way for citizens to achieve profitable savings. By doing so, they can tap into a world of diverse investment opportunities and secure their financial future.
- In an effort to combat lifestyle inflation and improve their personal-finance management, many Kazakhstanis are turning to online brokerage platforms and stock trading apps as a profitable savings tool.
- Amidst the rise in debt among the most affluent and the shift toward more conscious spending among the least affluent, the business of financial investment, particularly through online means, holds significant potential for improving Kazakhstan's personal-finance landscape.
