Economic trends
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 branches 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.
International trade
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%).
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Last updates: May 2012
