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Kyrgyzstan vs. Kazakhstan

Economy

KyrgyzstanKazakhstan
Economy - overview

Kyrgyzstan is a landlocked, mountainous, lower middle income country with an economy dominated by minerals extraction, agriculture, and reliance on remittances from citizens working abroad. Cotton, wool, and meat are the main agricultural products, although only cotton is exported in any quantity. Other exports include gold, mercury, uranium, natural gas, and - in some years - electricity. The country has sought to attract foreign investment to expand its export base, including construction of hydroelectric dams, but a difficult investment climate and an ongoing legal battle with a Canadian firm over the joint ownership structure of the nation's largest gold mine deter potential investors. Remittances from Kyrgyz migrant workers, predominantly in Russia and Kazakhstan, are equivalent to more than one-quarter of Kyrgyzstan's GDP.

Following independence, Kyrgyzstan rapidly implemented market reforms, such as improving the regulatory system and instituting land reform. In 1998, Kyrgyzstan was the first Commonwealth of Independent States country to be accepted into the World Trade Organization. The government has privatized much of its ownership shares in public enterprises. Despite these reforms, the country suffered a severe drop in production in the early 1990s and has again faced slow growth in recent years as the global financial crisis and declining oil prices have dampened economies across Central Asia. The Kyrgyz government remains dependent on foreign donor support to finance its annual budget deficit of approximately 3 to 5% of GDP.

Kyrgyz leaders hope the country's August 2015 accession to the Eurasian Economic Union (EAEU) will bolster trade and investment, but slowing economies in Russia and China and low commodity prices continue to hamper economic growth. Large-scale trade and investment pledged by Kyrgyz leaders has been slow to develop. Many Kyrgyz entrepreneurs and politicians complain that non-tariff measures imposed by other EAEU member states are hurting certain sectors of the Kyrgyz economy, such as meat and dairy production, in which they have comparative advantage. Since acceding to the EAEU, the Kyrgyz Republic has continued harmonizing its laws and regulations to meet EAEU standards, though many local entrepreneurs believe this process as disjointed and incomplete. Kyrgyzstan's economic development continues to be hampered by corruption, lack of administrative transparency, lack of diversity in domestic industries, and difficulty attracting foreign aid and investment.

Kazakhstan's vast hydrocarbon and mineral reserves form the backbone of its economy. Geographically the largest of the former Soviet republics, excluding Russia, Kazakhstan, g possesses substantial fossil fuel reserves and other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain. The government realizes that its economy suffers from an overreliance on oil and extractive industries and has made initial attempts to diversify its economy by targeting sectors like transport, pharmaceuticals, telecommunications, petrochemicals and food processing for greater development and investment. It also adopted a Subsoil Code in December 2017 with the aim of increasing exploration and investment in the hydrocarbon, and particularly mining, sectors.

Kazakhstan's oil production and potential is expanding rapidly. A $36.8 billion expansion of Kazakhstan's premiere Tengiz oil field by Chevron-led Tengizchevroil should be complete in 2022. Meanwhile, the super-giant Kashagan field finally launched production in October 2016 after years of delay and an estimated $55 billion in development costs. Kazakhstan's total oil production in 2017 climbed 10.5%.

Kazakhstan is landlocked and depends on Russia to export its oil to Europe. It also exports oil directly to China. In 2010, Kazakhstan joined Russia and Belarus to establish a Customs Union in an effort to boost foreign investment and improve trade. The Customs Union evolved into a Single Economic Space in 2012 and the Eurasian Economic Union (EAEU) in January 2015. Supported by rising commodity prices, Kazakhstan's exports to EAEU countries increased 30.2% in 2017. Imports from EAEU countries grew by 24.1%.

The economic downturn of its EAEU partner, Russia, and the decline in global commodity prices from 2014 to 2016 contributed to an economic slowdown in Kazakhstan. In 2014, Kazakhstan devalued its currency, the tenge, and announced a stimulus package to cope with its economic challenges. In the face of further decline in the ruble, oil prices, and the regional economy, Kazakhstan announced in 2015 it would replace its currency band with a floating exchange rate, leading to a sharp fall in the value of the tenge. Since reaching a low of 391 to the dollar in January 2016, the tenge has modestly appreciated, helped by somewhat higher oil prices. While growth slowed to about 1% in both 2015 and 2016, a moderate recovery in oil prices, relatively stable inflation and foreign exchange rates, and the start of production at Kashagan helped push 2017 GDP growth to 4%.

Despite some positive institutional and legislative changes in the last several years, investors remain concerned about corruption, bureaucracy, and arbitrary law enforcement, especially at the regional and municipal levels. An additional concern is the condition of the country's banking sector, which suffers from poor asset quality and a lack of transparency. Investors also question the potentially negative effects on the economy of a contested presidential succession as Kazakhstan's first president, Nursultan NAZARBAYEV, turned 77 in 2017.

GDP (purchasing power parity)$33.918 billion (2019 est.)

$32.455 billion (2018 est.)

$31.28 billion (2017 est.)

note: data are in 2010 dollars
$487.868 billion (2019 est.)

$466.859 billion (2018 est.)

$448.472 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate4.6% (2017 est.)

4.3% (2016 est.)

3.9% (2015 est.)
6.13% (2019 est.)

4.41% (2018 est.)

4.38% (2017 est.)
GDP - per capita (PPP)$5,253 (2019 est.)

$5,133 (2018 est.)

$5,047 (2017 est.)

note: data are in 2010 dollars
$26,351 (2019 est.)

$25,544 (2018 est.)

$24,863 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 14.6% (2017 est.)

industry: 31.2% (2017 est.)

services: 54.2% (2017 est.)
agriculture: 4.7% (2017 est.)

industry: 34.1% (2017 est.)

services: 61.2% (2017 est.)
Population below poverty line20.1% (2019 est.)4.3% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 4.4%

highest 10%: 22.9% (2014 est.)
lowest 10%: 4.2%

highest 10%: 23.3% (2016)
Inflation rate (consumer prices)1.1% (2019 est.)

1.5% (2018 est.)

3.1% (2017 est.)
5.2% (2019 est.)

6% (2018 est.)

7.3% (2017 est.)
Labor force2.841 million (2017 est.)8.685 million (2020 est.)
Labor force - by occupationagriculture: 48%

industry: 12.5%

services: 39.5% (2005 est.)
agriculture: 18.1%

industry: 20.4%

services: 61.6% (2017 est.)
Unemployment rate3.18% (2019 est.)

2.59% (2018 est.)
4.8% (2019 est.)

4.85% (2018 est.)
Distribution of family income - Gini index27.7 (2018 est.)

29 (2001)
27.5 (2017 est.)

31.5 (2003)
Budgetrevenues: 2.169 billion (2017 est.)

expenditures: 2.409 billion (2017 est.)
revenues: 35.48 billion (2017 est.)

expenditures: 38.3 billion (2017 est.)
Industriessmall machinery, textiles, food processing, cement, shoes, lumber, refrigerators, furniture, electric motors, gold, rare earth metalsoil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur, uranium, iron and steel; tractors and other agricultural machinery, electric motors, construction materials
Industrial production growth rate10.9% (2017 est.)5.8% (2017 est.)
Agriculture - productsmilk, potatoes, sugar beet, maize, wheat, barley, tomatoes, watermelons, onions, carrots/turnipswheat, milk, potatoes, barley, watermelons, melons, linseed, onions, maize, sunflower seed
Exports$2.742 billion (2019 est.)

$2.288 billion (2018 est.)

$2.352 billion (2017 est.)
$76.455 billion (2019 est.)

$74.809 billion (2018 est.)

$68.256 billion (2017 est.)
Exports - commoditiesgold, precious metals, various beans, refined petroleum, scrap copper (2019)crude petroleum, natural gas, copper, iron alloys, radioactive chemicals (2019)
Exports - partnersUnited Kingdom 56%, Kazakhstan 13%, Russia 13%, Uzbekistan 5% (2019)China 13%, Italy 12%, Russia 10%, Netherlands 7%, France 6%, South Korea 5% (2019)
Imports$5.477 billion (2019 est.)

$5.32 billion (2018 est.)

$4.953 billion (2017 est.)
$69.117 billion (2019 est.)

$61.933 billion (2018 est.)

$58.099 billion (2017 est.)
Imports - commoditiesrefined petroleum, footwear, clothing and apparel, broadcasting equipment, walnuts (2019)packaged medicines, natural gas, cars, broadcasting equipment, aircraft (2019)
Imports - partnersChina 53%, Russia 17%, Kazakhstan 7%, Uzbekistan 7%, Turkey 5% (2019)Russia 34%, China 24% (2019)
Debt - external$8.372 billion (2019 est.)

$8.066 billion (2018 est.)
$159.351 billion (2019 est.)

$163.73 billion (2018 est.)
Exchange ratessoms (KGS) per US dollar -

68.35 (2017 est.)

69.914 (2016 est.)

69.914 (2015 est.)

64.462 (2014 est.)

53.654 (2013 est.)
tenge (KZT) per US dollar -

420.0049 (2020 est.)

385.9248 (2019 est.)

370.4648 (2018 est.)

221.73 (2014 est.)

179.19 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt56% of GDP (2017 est.)

55.9% of GDP (2016 est.)
20.8% of GDP (2017 est.)

19.7% of GDP (2016 est.)
Reserves of foreign exchange and gold$2.177 billion (31 December 2017 est.)

$1.97 billion (31 December 2016 est.)
$30.75 billion (31 December 2017 est.)

$29.53 billion (31 December 2016 est.)
Current Account Balance-$306 million (2017 est.)

-$792 million (2016 est.)
-$7.206 billion (2019 est.)

-$138 million (2018 est.)
GDP (official exchange rate)$8.442 billion (2019 est.)$181.194 billion (2019 est.)
Credit ratingsMoody's rating: B2 (2015)

Standard & Poors rating: NR (2016)
Fitch rating: BBB (2016)

Moody's rating: Baa3 (2016)

Standard & Poors rating: BBB- (2016)
Ease of Doing Business Index scoresOverall score: 67.8 (2020)

Starting a Business score: 93 (2020)

Trading score: 74.7 (2020)

Enforcement score: 50.4 (2020)
Overall score: 79.6 (2020)

Starting a Business score: 94.4 (2020)

Trading score: 70.4 (2020)

Enforcement score: 81.3 (2020)
Taxes and other revenues28.7% (of GDP) (2017 est.)22.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-3.2% (of GDP) (2017 est.)-1.8% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 9.6%

male: 7.8%

female: 13.4% (2018 est.)
total: 3.8%

male: 3.6%

female: 4% (2017 est.)
GDP - composition, by end usehousehold consumption: 85.4% (2017 est.)

government consumption: 18.9% (2017 est.)

investment in fixed capital: 33.2% (2017 est.)

investment in inventories: 1.8% (2017 est.)

exports of goods and services: 39.7% (2017 est.)

imports of goods and services: -79% (2017 est.)
household consumption: 53.2% (2017 est.)

government consumption: 11.1% (2017 est.)

investment in fixed capital: 22.5% (2017 est.)

investment in inventories: 4.8% (2017 est.)

exports of goods and services: 35.4% (2017 est.)

imports of goods and services: -27.1% (2017 est.)
Gross national saving19.5% of GDP (2019 est.)

26.6% of GDP (2018 est.)

26.7% of GDP (2017 est.)
26.6% of GDP (2019 est.)

27.8% of GDP (2018 est.)

25.9% of GDP (2017 est.)

Source: CIA Factbook