Kazakhstan Economy Profile 2013

Economy - overview

Kazakhstan, geographically the largest of the former Soviet republics, excluding Russia, possesses enormous fossil fuel reserves and plentiful supplies of other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain. In 2002 Kazakhstan became the first country in the former Soviet Union to receive an investment-grade credit rating. Extractive industries have been and will continue to be the engine of Kazakhstan's growth, although the country is aggressively pursuing diversification strategies. Landlocked, with restricted access to the high seas, Kazakhstan relies on its neighbors to export its products, especially oil and grain. Although its Caspian Sea ports, pipelines, and rail lines carrying oil have been upgraded, civil aviation and roadways continue to need attention. Telecoms are improving, but require considerable investment, as does the information technology base. Supply and distribution of electricity can be erratic because of regional dependencies, but the country is moving forward with plans to improve reliability of electricity and gas supply to its population. At the end of 2007, global financial markets froze up and the loss of capital inflows to Kazakhstani banks caused a credit crunch. The subsequent and sharp fall of oil and commodity prices in 2008 aggravated the economic situation, and Kazakhstan plunged into recession. While the global financial crisis took a significant toll on Kazakhstan's economy, it has rebounded well, helped by prudent government measures. GDP increased 7.5% year-on-year in 2011, and 5.5% in 2012. Rising commodity prices have helped the recovery. Despite solid macroeconomic indicators, the government realizes that its economy suffers from an overreliance on oil and extractive industries, the so-called "Dutch disease." In response, Kazakhstan has embarked on an ambitious diversification program, aimed at developing targeted sectors like transport, pharmaceuticals, telecommunications, petrochemicals and food processing. In 2010 Kazakhstan joined the Belarus-Kazakhstan-Russia Customs Union in an effort to boost foreign investment and improve trade relationships and is planning to accede to the World Trade Organization in 2013.

GDP (purchasing power parity)

$232.3 billion (2012 est.)
$220.3 billion (2011 est.)
$204.9 billion (2010 est.)
note: data are in 2012 US dollars

GDP (official exchange rate)

$200.6 billion (2012 est.)

GDP - real growth rate

5.5% (2012 est.)
7.5% (2011 est.)
7.3% (2010 est.)

GDP - per capita (PPP)

$13,900 (2012 est.)
$13,200 (2011 est.)
$12,500 (2010 est.)
note: data are in 2012 US dollars

GDP - composition by sector

agriculture: 5.2%
industry: 37.9%
services: 56.9% (2011 est.)

Population below poverty line

8.2% (2009 est.)

Labor force

8.973 million (2012 est.)

Labor force - by occupation

agriculture: 25.9%
industry: 11.9%
services: 62.2% (2010 est.)

Unemployment rate

5.3% (2012 est.)
5.4% (2011 est.)

Unemployment, youth ages 15-24

total: 6.7%
male: 6.8%
female: 8.2% (2008)

Household income or consumption by percentage share

lowest 10%: 4%
highest 10%: 23.8% (2009 est.)

Distribution of family income - Gini index

26.7 (2009)
31.5 (2003)

Investment (gross fixed)

21.6% of GDP (2012 est.)

Budget

revenues: $43.08 billion
expenditures: $48.04 billion (2012 est.)

Taxes and other revenues

21.5% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

-2.5% of GDP (2012 est.)

Public debt

15.5% of GDP (2012 est.)
12.6% of GDP (2011 est.)

Inflation rate (consumer prices)

5.2% (2012 est.)
8.3% (2011 est.)

Central bank discount rate

7.5% (31 December 2011 est.)
4.25% (31 December 2010 est.)

Commercial bank prime lending rate

6.3% (31 December 2012 est.)
6.71% (31 December 2011 est.)

Stock of money

$16.12 billion (31 December 2008)
$12.74 billion (31 December 2007)

Stock of narrow money

$27.55 billion (31 December 2012 est.)
$26 billion (31 December 2011 est.)

Stock of broad money

$65.71 billion (31 December 2011 est.)
$57.51 billion (31 December 2010 est.)

Stock of quasi money

$35.76 billion (31 December 2008)
$25.75 billion (31 December 2007)

Stock of domestic credit

$75.55 billion (31 December 2012 est.)
$75.12 billion (31 December 2011 est.)

Market value of publicly traded shares

$43.3 billion (31 December 2011)
$60.74 billion (31 December 2010)
$57.66 billion (31 December 2009)

Agriculture - products

grain (mostly spring wheat and barley), potatoes, vegetables, melons; livestock

Industries

oil, 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 rate

3.4% (2011 est.)

Current Account Balance

$12.69 billion (2012 est.)
$14.11 billion (2011 est.)

Exports

$88.61 billion (2012 est.)
$88.47 billion (2011 est.)

Exports - commodities

oil and oil products 59%, ferrous metals 19%, chemicals 5%, machinery 3%, grain, wool, meat, coal

Exports - partners

China 21.7%, France 9.4%, Germany 8.3%, Russia 5.3%, Italy 5.2%, Canada 4.5%, Romania 4.5% (2011)

Imports

$42.82 billion (2012 est.)
$41.21 billion (2011 est.)

Imports - commodities

machinery and equipment, metal products, foodstuffs

Imports - partners

China 30.1%, Russia 20%, Germany 7.4%, Ukraine 5% (2011)

Reserves of foreign exchange and gold

$32.82 billion (31 December 2012 est.)
$29.33 billion (31 December 2011 est.)

Debt - external

$105.5 billion (31 December 2012 est.)
$103.3 billion (31 December 2011 est.)

Stock of direct foreign investment - at home

$105.5 billion (31 December 2012 est.)
$92.04 billion (31 December 2011 est.)

Stock of direct foreign investment - abroad

$20.29 billion (31 December 2012 est.)
$18.29 billion (31 December 2011 est.)

Exchange rates

tenge (KZT) per US dollar -
148.6 (2012 est.)
146.62 (2011 est.)
147.36 (2010 est.)
147.5 (2009)
120.25 (2008)

Fiscal year

calendar year