Kazakhstan

Capital: Astana, capital of Kazakhstan, independent since 1997

Local time:
It is %T:%M %A in Astana

GDP growth rate: 5.9% in 2013

FDI stock: 81 352 million USD in 2010

Economic trends

Kazakhstan's foreign debt continues to increase. It went from USD 107.6 billion in 2008 to USD 111.1 billion in 2009. The growth rate of the GDP was estimated at 5.4% in 2010 after a difficult period in between 2008 (3.2%) and 2009 (1.2%) which was mainly provoked by the drop in oil prices. The economy of Kazakhstan is still sustained by its oil exports, despite the will of the public authorities to diversify it. In July 2010, the Customs Union was adopted which regroups Russia, Belarus and Kazakhstan, and this could facilitate this diversification.

Despite the efforts of the Kazakhstan National Bank (central bank) to fight against inflation, in 2009, inflation rose to 7.3% and in 2010 to 7.6%. The salaries of the Kazakhstanis are rising in 2010. The unemployment, according to the ILO index, has decreased and has become stable at 7.8% in 2010 against 8% in 2009.

Even if the economy was relatively well-controlled in 2010 in relation to the previous year, mainly due to the job support program and the development of trade, the authorities do not exclude that 2011 could be a more difficult year.

Main branches of industry

The agricultural sector does not contribute but to about 5.3% of the GDP but it employs around 33.5% 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. Cereal production obtained a record figure of 22.7 million tons in 2009; however, it did not reach but 13.7 million tons in 2010.  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.  This industry represented about 30% of the GDP in 2009. The production of hydrocarbons has increased 8.5% in 2009 in relation to 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 54.5% 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 (number one), followed by Russia and Germany. According to a declaration of the vice-minister of the economical development dated in November 2010, Kazakhstan could join the WTO in 2012.

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 (31.2%), China (12.7%), Ukraine (7.6%), Germany (7.2%) and France (1.6%). Important contracts were signed in 2009 with France: Thales, EADS, Spie Capag, Areva, Alstom, Total, and BNP Paribas, for the construction of an oil pipeline, exploitation of a hydrocarbon deposit and cooperation in the space sector, in particular. In 2010, more new contracts were signed on the nuclear field between Kazatomprom and Areva, in the defense sector with Eads-Eurocopter, and also contracts for the purchase of locomotion were executed with Alstom Transport. During the first eight months of 2010, the volume of trade between the two countries had an increase of 52% in relation to the same period in 2009.