Kazakhstan

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Kazakhstan became the first ex-Soviet Republic to repay its entire debt to the International Monetary Fund (IMF) before the deadline, in 2000.
GDP growth rate was 10.6% in 2006, 8.7% in 2007 and 3.2% in 2008. However, the country went into recession at the beginning of 2009, due to the effects of the international financial crisis, combined with the drop of oil prices. In effect, the economy is carried by oil exports which generate 40% of the country's total revenue.
Consumption prices rose to over 8% in 2008 (9.5% in December) despite the Kazakhastan National Bank's (the central bank) efforts to fight against inflation. In January-April 2009, it reached almost 9%. Real Kazakh income was therefore less in 2008 (+3.3%) than in 2007 (+18.%).
According to the ILO Governing Body, the unemployment rate was at nearly 7% of the active population in June 2009.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	81.00	104.85	132.23	101.85e	115.82e
GDP (constant prices, annual % change)	10.7	8.9	3.2e	-2.0	1.5e
GDP per capita (USD)	5,261	6,748	8,502	6,542	7,432e
Inflation rate (%)	8.6	10.8	17.2e	9.5e	8.7
Unemployment rate (% of the labor force)	-	-	6.9	-	-
Current Account (billions USD)	-2.00	-8.23	6.98	-6.56	1.26e
Current Account (in % of GDP)	-2.5	-7.8	5.3e	-6.4	1.1e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

The agricultural sector contributes to about 5% of the GDP and employs around 30% of the active population. Kazakhstan, with its 22.2 million hectares of agricultural land, is the 6th biggest global producer of cereals, despite low yields per hectare. Livestock farming is also an important activity. Kazakhstan is self-sufficient, except for poultry, of which 60% is imported.

Kazakhstan is rich in natural resources: hydrocarbons, coal, copper, zinc, uranium and silver. The industry represents 30% of the GDP in 2009. It showed a significant production drop in November-December 2008 as well as in January-May 2009. June 2009 showed a rise of 7% compared to June 2008. The mining industry's volume progressed by 1.8% during the first quarter of 2009. The production of hydrocarbons progressed by almost 10% in the first five months of 2009, compared to the same period in 2008. Construction developed considerably until August 2007. At the beginning of 2009, production in this sector was less than production at the beginning of 2008. Manufacturing activities are limited to textiles, chemical products, fertilizers and pharmaceutical products.

The tertiary sector is growing and contributes more than half of the GDP.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	31.5	18.4	49.1
Value added (in % of GDP)	6.1	40.6	53.3
Value added (annual % change)	8.9	8.0	13.2

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Kazakhstan Tenge (KZT) - Average annual exchange rate for 1 USD	136.04	132.88	126.09	122.55	120.30

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 60.1/100
Position:: moderately free
World Rank:: 83 out of 179
Regional Rank:: 14 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Kazakhstan is open to international trade. Main export goods are oil, petroleum products, coal, iron and steel, chemical products, machinery, cereal, wool and meat. Its main export partners are firstly China, followed by Russia and Germany.

The country mainly imports machinery, electric and electronic equipment and food products. Russia is an important partner of Kazakhstan, both politically and economically. The two countries have undertaken common projects in many fields including energy. Kazakhstan's main import partners are Russia, China, Germany and France (significant contracts were signed in 2009 with France: Thales, EADS, Spie Capag, Areva, Alstom, Total, and BNP Paribas) for the contruction of an oil pipeline, the management of a hydrocarbon deposit and particularly cooperation in the space sector).

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	9,554	13,818	17,979	24,120	33,260
Exports of goods (millions USD)	13,233	20,603	28,301	38,762	48,351
Imports of services (millions USD)	3,753	5,108	7,496	8,760	11,627
Exports of services (millions USD)	1,712	2,009	2,228	2,819	3,555
Imports of goods and services (annual % change)	-7.6	14.8	12.5	12.1	25.5
Exports of goods and services (annual % change)	7.5	10.9	1.1	6.5	9.0
Imports of goods and services (in % of GDP)	43.0	43.5	44.7	40.4	42.6
Exports of goods and services (in % of GDP)	48.4	52.2	53.5	51.1	49.4
Trade Balance (millions USD)	3,679	6,785	10,322	14,642	15,091
Trade Balance (including service) (millions USD)	1,639	3,687	5,055	8,700	7,019
Foreign trade (in % of GDP)	91.5	95.7	98.3	91.6	92.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Italy	16.7%
Switzerland	15.9%
China	10.8%
Russia	8.7%
France	7.6%
Netherlands	6.5%
Israel	3.1%
Iran	2.9%
Ukraine	2.8%
Turkey	2.7%
United Kingdom	2.5%
Uzbekistan	1.8%
Romania	1.4%
Spain	1.3%
Japan	1.1%
Slovakia	1.1%
Finland	0.9%
Afghanistan	0.9%
Germany	0.9%
United States	0.8%
See more countries	40.3%

Main suppliers (% of imports)	2008
Russia	36.4%
China	12.1%
Germany	6.8%
Ukraine	5.6%
United States	5.1%
Italy	3.3%
Japan	2.6%
Turkey	2.6%
France	2.1%
Norway	1.8%
United Kingdom	1.8%
Uzbekistan	1.4%
Finland	1.3%
Poland	1.1%
South Korea	1.1%
Belarus	1.0%
Canada	0.9%
Austria	0.8%
Sweden	0.8%
Netherlands	0.7%
See more countries	34.1%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	68.7%
Iron and steelIron and steel	8.8%
Copper and articles thereofCopper and articles thereof	4.1%
Ores, slag and ashOres, slag and ash	3.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	3.2%
CerealsCereals	2.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	1.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.0%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.9%
Zinc and articles thereofZinc and articles thereof	0.9%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	0.5%
Aluminium and articles thereofAluminium and articles thereof	0.4%
Articles of iron or steelArticles of iron or steel	0.4%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.3%
Lead and articles thereofLead and articles thereof	0.3%
CottonCotton	0.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
FertilizersFertilizers	0.1%
See more products	11.8%

Main imports (% of imports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	19.1%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	14.4%
Articles of iron or steelArticles of iron or steel	11.6%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	7.5%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	7.0%
Iron and steelIron and steel	3.1%
Plastics and articles thereofPlastics and articles thereof	2.4%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	2.2%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	2.0%
Pharmaceutical productsPharmaceutical products	1.9%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.5%
Rubber and articles thereofRubber and articles thereof	1.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.3%
Miscellaneous chemical productsMiscellaneous chemical products	1.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.0%
Sugars and sugar confectionerySugars and sugar confectionery	0.9%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.8%
Ships, boats and floating structuresShips, boats and floating structures	0.8%
Aluminium and articles thereofAluminium and articles thereof	0.8%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.8%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.8%
Ceramic productsCeramic products	0.8%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.7%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Glass and glasswareGlass and glassware	0.7%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.7%
Ores, slag and ashOres, slag and ash	0.7%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.6%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.6%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.6%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.5%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Organic chemicalsOrganic chemicals	0.4%
Meat and edible meat offalMeat and edible meat offal	0.3%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
FertilizersFertilizers	0.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Explosives; pyrotechnic products; matches;...Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations	0.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.1%
CerealsCereals	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
See more products	40.4%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Finance
Ministry of Economy
Ministry of Energy and Mineral resources
Ministry of Industry and Trade
Ministry of Agriculture
Ministry of Justice
Statistical Office: Agency of Statistics of the Republic of Kazakhstan
Central Bank: National Bank of Kazakhstan
Stock Exchange: Kazakhstan Stock Exchange(Kaze)
Search Engines: Site.kz
Kazakinfo.com
Economic portals: Portal on Mining Sector

Political outline

Executive Power: The President is also the Commander-in-chief of the army. He can propose constitutional amendments, appoint and revoke the government, dissolve the parliament and call for referendum when he wants. The Prime Minister is the head of the government. He and the Council of Ministers are appointed by the President.
Legislative Power: On 17 May 2007, President Nazarbaev presented the entire series of constitutional amendments in the Parliament with a view to establish a "parliamentary-presidential system" to reinforce the control of the President on the institutions a little more, resulting from these amendements approved by the Parliament (constituted from the Senate and Majilis). At present the Senate has 47 seats out of which 15 are appointed by the President and Majilis has 107 of which 98 are elected by proportional ballot and 9 appointed by the People's Assembly of Kazakshtan.

The parties should obtain at least 7% of the votes to be represented in the Majilis.

It is the responsibility of the Parliament to give its approval or non-approval of the nomination of the Prime Minister by the Head of State .
Main political parties: The opposition parties are authorised but they hardly have any chance to win the power. The main political parties of the country are:
- Otan (Homeland): Presidential party (98 seats in Majilis, which is the total number elected) ;
- National Democratic Social Party ;
- Ak Jol (Lighted Path) ;
- Aouyl Social Democratic Party ;
- Communist Party of Kazakhstan ;
- Agrarian Party of Kazakhstan - Kazakhstan Patriots Party.
Current political leaders: President : Nursultan A. NAZARBAYEV (since December 1991, re-elected in 1999 and 2005) - Homeland
Prime Minister: Karim MASIMOV (since 10 January 2007) – appointed directly by the President
Mayor of Astana: Imagali Tasmagambetov
Head of presidential administration: Kairat Kelimbetov
Jarmakhan Touyakbai: of the "Just for Kazakhstan" party;
Several times minister and advisor to the President: Oraz Djandosov
Founder with O. Djandosov of the Naghyz Ak Jol party ("True Ak Jol") which became the Azat party in 2008: Boulat Abilov
Next election dates: Presidential elections planned in 2012
Elections for deputies of the Majilis planned in 2012
Elections of Senators planned in autumn 2011

Indicator of freedom of the press

World Rank:: 125/173
Evolution:: Same rank in relation to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Not Free
Political freedom:: 6/7
Civil liberties:: 5/7

Map of freedom 2007
Source: Freedom House

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