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flag Kazakhstan Kazakhstan: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Kazakhstan's foreign debt continues to increase. It went from USD 107.6 billion in 2008 to USD 111.1 billion in 2009. The growth rate of the GDP was estimated at 5.4% in 2010 after a difficult period in between 2008 (3.2%) and 2009 (1.2%) which was mainly provoked by the drop in oil prices. The economy of Kazakhstan is still sustained by its oil exports, despite the will of the public authorities to diversify it. In July 2010, the Customs Union was adopted which regroups Russia, Belarus and Kazakhstan, and this could facilitate this diversification.

Despite the efforts of the Kazakhstan National Bank (central bank) to fight against inflation, in 2009, inflation rose to 7.3% and in 2010 to 7.6%. The salaries of the Kazakhstanis are rising in 2010. The unemployment, according to the ILO index, has decreased and has become stable at 7.8% in 2010 against 8% in 2009.

Even if the economy was relatively well-controlled in 2010 in relation to the previous year, mainly due to the job support program and the development of trade, the authorities do not exclude that 2011 could be a more difficult year.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 115.31148.05180.15200.00225.11
GDP (Constant Prices, Annual % Change) 1.27.3e6.55.65.9
GDP per Capita (USD) 7,1199,00910,951e12,14613,657
General Government Gross Debt (in % of GDP) 10.210.712.913.013.8
Inflation Rate (%) 7.47.4e8.97.97.2
Unemployment Rate (% of the Labor Force) 6.65.85.75.65.5
Current Account (billions USD) -4.364.3210.669.237.72
Current Account (in % of GDP) -3.82.95.9e3.4-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector does not contribute but to about 5.3% of the GDP but it employs around 33.5% of the active population. Kazakhstan, with its 22.2 million hectares of agricultural land, is the 6th largest global producer of cereals, despite its low yields per hectare. Cereal production obtained a record figure of 22.7 million tons in 2009; however, it did not reach but 13.7 million tons in 2010.  Livestock farming is also an important activity. Kazakhstan is practically self-sufficient in food production.

Kazakhstan is rich in natural resources, almost all of them are present in its subsoil.  This industry represented about 30% of the GDP in 2009. The production of hydrocarbons has increased 8.5% in 2009 in relation to 2008.  The construction sector had strongly developed until August 2007, then it experienced a crisis from which it has not yet recovered.  The manufacturing activities are limited to textile, chemical products, fertilizers and pharmaceutical products.

The tertiary sector is growing and contributes 54.5% to the GDP.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 29.4 18.9 51.7
Value Added (in % of GDP) 5.4 42.4 52.2
Value Added (Annual % Change) -3.0 5.6 5.7

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Kazakhstan Tenge (KZT) - Average Annual Exchange Rate For 1 USD 126.09122.55120.30147.50147.35

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Kazakhstan on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
62.1/100
Position:
Moderately free
World Rank:
74/179
Regional Rank:
11/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Kazakhstan is open to international trade. Its main export goods are oil, petroleum products, coal, iron ore, chemical products, machinery, cereal, wool and meat. Its main export partners are China (number one), followed by Russia and Germany. According to a declaration of the vice-minister of the economical development dated in November 2010, Kazakhstan could join the WTO in 2012.

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 (31.2%), China (12.7%), Ukraine (7.6%), Germany (7.2%) and France (1.6%). Important contracts were signed in 2009 with France: Thales, EADS, Spie Capag, Areva, Alstom, Total, and BNP Paribas, for the construction of an oil pipeline, exploitation of a hydrocarbon deposit and cooperation in the space sector, in particular. In 2010, more new contracts were signed on the nuclear field between Kazatomprom and Areva, in the defense sector with Eads-Eurocopter, and also contracts for the purchase of locomotion were executed with Alstom Transport. During the first eight months of 2010, the volume of trade between the two countries had an increase of 52% in relation to the same period in 2009.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 23,67732,75637,88928,40929,760
Exports of Goods (million USD) 38,25047,75571,17243,19659,217
Imports of Services (million USD) 8,62111,47310,9159,88110,237
Exports of Services (million USD) 2,5843,2513,9813,8133,815
Imports of Goods and Services (Annual % Change) 12.225.8-11.5-15.9-21.3
Exports of Goods and Services (Annual % Change) 6.59.00.8-6.2-1.5
Imports of Goods and Services (in % of GDP) 40.542.837.133.826.6
Exports of Goods and Services (in % of GDP) 51.249.457.242.044.9
Trade Balance (million USD) 14,64215,09133,51914,96928,881
Trade Balance (Including Service) (million USD) 8,7006,92526,8259,15921,828
Foreign Trade (in % of GDP) 91.692.294.375.871.5

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2009
Italy 15.5%
China 13.6%
Russia 8.2%
France 7.8%
Switzerland 6.2%
See More Countries 48.7%
Main Suppliers
(% of Imports)
2009
Russia 31.3%
China 12.6%
Ukraine 7.5%
Germany 7.2%
Italy 6.7%
See More Countries 34.7%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2009
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 60.7%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 4.2%
Radioactive chemical elements and radioactive...Radioactive chemical elements and radioactive isotopes, incl. their fissile or fertile chemical elements and isotopes, and their compounds; mixtures and residues containing these products 3.7%
Copper, refined, and copper alloys, unwrought ...Copper, refined, and copper alloys, unwrought (excl. copper alloys of heading 7405) 3.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.8%
See More Products 25.4%
Main Imports
(% of Imports)
2009
Tubes and pipes, having circular cross-sections...Tubes and pipes, having circular cross-sections and an external diameter of > 406,4 mm, of flat-rolled products of iron or steel "e.g., welded, riveted or similarly closed" 8.1%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 5.1%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.7%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.7%
Taps, cocks, valves and similar appliances for...Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, incl. pressure-reducing valves and thermostatically controlled valves; parts thereof 2.2%
See More Products 79.1%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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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

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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.
Next Election Dates
Presidential elections planned in April 2011
Elections for deputies of the Majilis planned in 2012
Elections of Senators planned in autumn 2011
 

Indicator of Freedom of the Press

World Rank:
162/178
Evolution:
20 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
6/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012