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Kazakhstan: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Between 1997 to 2007, GDP has been multiplied by 3.5. The growth of the Kazakhstan economy, which is largely based on the oil-gas annuity (25% of GDP, 60% of exports, 40% of budgetary revenues), has benefited from the rising price of oil. Today, Kazakhstan is seeking to diversify its industrial base and technology, particularly through partnerships with foreign companies.
Kazakhstan holds 75% of the hydrocarbon reserves of the Caspian Sea (3% of world oil reserves, 1.7% of gas reserves) and by 2020 could become the seventh largest producer of oil, once the giant field of Kashagan (40% of proved reserves of the country) begins operations. Kazakhstan also has the second largest reserve of uranium (largest producer).
The country was extremely badly hit by the economic crisis of 2008-9, notably due to the weakness of its banking system. However, Kazakhstan has recorded growth in 2009 (1.25%), in 2010 (4.1%) and in 2011 (more than 6.5%). The country's GDP represents today 75% of the GDP of the entire region of Central Asia.
In spite of strong government price control, inflation remains strong (8.5%). The financial system remains fragile.
The country remains dependent on oil prices and the economy is still driven by oil exports, despite government efforts to diversify. The July 2010 creation of a Customs Union which includes Russia, Belarus and Kazakhstan, will help facilitate this diversification.
Wages have been increasing since 2010 and the unemployment rate has decreased (according to the criteria of the International Labour Organisation - ILO), reaching 5.3% in 2011 compared to nearly 8% in 2010.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 115.31 | 148.05 | 180.15 | 200.00 | 225.11 |
| GDP (Constant Prices, Annual % Change) | 1.2 | 7.3e | 6.5 | 5.6 | 5.9 |
| GDP per Capita (USD) | 7,119 | 9,009 | 10,951e | 12,146 | 13,657 |
| General Government Gross Debt (in % of GDP) | 10.2 | 10.7 | 12.9 | 13.0 | 13.8 |
| Inflation Rate (%) | 7.4 | 7.4e | 8.9 | 7.9 | 7.2 |
| Unemployment Rate (% of the Labor Force) | 6.6 | 5.8 | 5.7 | 5.6 | 5.5 |
| Current Account (billions USD) | -4.36 | 4.32 | 10.66 | 9.23 | 7.72 |
| Current Account (in % of GDP) | -3.8 | 2.9 | 5.9e | 3.4 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
The agricultural sector only contributes to about 4% of the GDP but it employs around 33% 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. 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.
Industry represents about 40% of the GDP. The production of hydrocarbons has been increasing steadily since 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 53% 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.
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| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Kazakhstan Tenge (KZT) - Average Annual Exchange Rate For 1 USD | 126.09 | 122.55 | 120.30 | 147.50 | 147.35 |
Source: World Bank - Last Available Data.
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Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
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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, Russia and Germany.
Joining the WTO remains a stated goal for the end of 2012 and the negotiations are progression.
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 (37%), China (13.3%), followed by Germany (6.1%), Ukraine and France (1.6%).
| Foreign Trade Indicators | 2007 | 2008 | 2009 | 2010 | 2011 |
| Imports of Goods (million USD) | 32,756 | 37,889 | 28,409 | 29,760 | 38,039 |
| Exports of Goods (million USD) | 47,755 | 71,172 | 43,196 | 59,217 | 88,118 |
| Imports of Services (million USD) | 11,473 | 10,915 | 9,881 | 11,142 | 10,563 |
| Exports of Services (million USD) | 3,251 | 3,981 | 3,813 | 3,890 | 4,093 |
| Imports of Goods and Services (Annual % Change) | 25.8 | -11.5 | -15.9 | -21.3 | - |
| Exports of Goods and Services (Annual % Change) | 9.0 | 0.8 | -6.2 | -1.5 | - |
| Imports of Goods and Services (in % of GDP) | 42.8 | 37.1 | 33.8 | 26.6 | - |
| Exports of Goods and Services (in % of GDP) | 49.4 | 57.2 | 42.0 | 44.9 | - |
| Trade Balance (million USD) | 15,091 | 33,519 | 14,969 | 28,881 | - |
| Trade Balance (Including Service) (million USD) | 7,019 | 26,903 | - | - | - |
| Foreign Trade (in % of GDP) | 92.2 | 94.3 | 75.8 | 71.5 | - |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| 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
Source: Comtrade, Last Available Data
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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 .
Source: Worldwide Press Freedom Index 2011, Reporters Without Borders
Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
Map of freedom 2010
Source: Freedom House
Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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Last Updates: May 2012