The first platform of international trade in Egypt
Register here  |  Forgotten password?

Home > Country profiles > Economic and Political Outline

flag Kazakhstan Kazakhstan: Economic and Political Outline

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

Economic Indicators

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 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 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.

 

Find more information about your business sector on our service Market reports.

 
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.

 

Find out all the exchange rates daily on our service Currency converter.

 
Learn more about Market Analyses about Kazakhstan on Globaltrade.net, the Directory for International Trade Service Providers.
 

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

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.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Return to top

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, 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 20072008200920102011
Imports of Goods (million USD) 32,75637,88928,40929,76038,039
Exports of Goods (million USD) 47,75571,17243,19659,21788,118
Imports of Services (million USD) 11,47310,9159,88111,14210,563
Exports of Services (million USD) 3,2513,9813,8133,8904,093
Imports of Goods and Services (Annual % Change) 25.8-11.5-15.9-21.3-
Exports of Goods and Services (Annual % Change) 9.00.8-6.2-1.5-
Imports of Goods and Services (in % of GDP) 42.837.133.826.6-
Exports of Goods and Services (in % of GDP) 49.457.242.044.9-
Trade Balance (million USD) 15,09133,51914,96928,881-
Trade Balance (Including Service) (million USD) 7,01926,903---
Foreign Trade (in % of GDP) 92.294.375.871.5-

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

 
 

To go further, check out our service Import export flows.

Return to top

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

Return to top

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:
154/179
Evolution:
8 places up compared to 2010

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.).

 

Indicator of Political Freedom

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

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.

 

Return to top

Any Comments About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Last Updates: May 2012

Copyright 2011 © Crédit Agricole Egypt
CA Egypt website  |  Sitemap  |  Terms and Conditions  |  FAQ  |  Contact us  |  Customer Support 19191
Print
Download in PDF format