
Economy
The economy of the Republic of Kazakhstan rests on the extraction and processing of natural resources. Since 1999 the Kazakh economy can be characterized by a rather rapid rate of growth. In 1999-2002, the national GDP growth made 40.1%, industrial production – 48.2%, agricultural production – 47.7%, construction – 87.1%. In 1993-2002, the influx of foreign investments exceeded $21 billion.
The inflation rate has significantly reduced recently: from 17.8% in 1999 to 6.6% in 2002. The refinancing rate appears to be one of the lowest in the CIS (7%). In June 2003 reserves of foreign exchange of the National Bank increased up to $7 billion.
The EU and the US Congress recognized Kazakhstan to be a market economy state. In September 2002 one of the leading international rating agencies “Moody’s Investors Service” gave Kazakhstan a Baa3 credit rating attributed to the investment category.
In May 2003 “Standard & Poor’s Rating Services” increased long-term credit ratings on obligations in foreign currency from BB to BB+ and credit ratings on obligations in national currency from BB+/Positive/B to BBB-/Stable/A-3. These grades reflect a sustainable strengthening of potentials of the Kazakh economy.
Main Economic Indicators
GDP growth

Inflation rate

Unemployment rate

Main Macroeconomic Indicators of Kazakhstan as % of the previous year
|
|
1995
|
1996
|
1997
|
1998
|
1999
|
2000
|
2001
|
2002
|
2003
|
2004
|
Gross domestic product
|
91,8
|
100,5
|
101,7
|
98,1
|
102,7
|
109,8
|
113,5
|
109,8
|
109,3
|
109,4
|
Industrial production
|
92
|
100,3
|
104
|
98
|
103
|
116
|
114
|
110
|
109
|
110
|
Agricultural production
|
76
|
95
|
99,2
|
81
|
128
|
96
|
117
|
103
|
101
|
100,1
|
Capital investments
|
57
|
60
|
112
|
142
|
133
|
149
|
145
|
111
|
117
|
111
|
Freight carried
|
73
|
104
|
105
|
98
|
101
|
131
|
113
|
113
|
109
|
109
|
Retail trade turnover
|
103
|
133
|
129
|
119
|
102
|
105
|
115
|
108
|
110
|
111
|
Industrial producers price index
|
240
|
124
|
116
|
100,8
|
119
|
138
|
100,3
|
100,3
|
109
|
117
|
Consumer price indices
|
276
|
139
|
117
|
107
|
108
|
113
|
108
|
106
|
106
|
107
|
Export to CIS countries
|
154
|
110
|
94
|
71
|
72
|
155
|
113
|
83
|
136
|
137
|
Export to other countries
|
174
|
115
|
129
|
92
|
135
|
148
|
93
|
125
|
133
|
161
|
Import from CIS countries
|
122
|
111
|
79
|
88
|
78
|
170
|
121
|
92
|
129
|
156
|
Import from other countries
|
83
|
112
|
152
|
115
|
91
|
113
|
136
|
113
|
126
|
149
|
Source: Interstate Statistical Committee of the CIS
Statistics
Agency on Statistics of the Republic of Kazakhstan - www.stat.kz
Interstate Statistical Committee of the CIS - www.cisstat.com
Official statistical information on social and economic situation in the CIS countries
Privatization
The property reform has undergone two stages in Kazakhstan. The first stage covered the period of 1991-1992 when privatization of the trade sector and services was carried out, and the public property was transferred to the labor unions of the state enterprises. More than 2500 large and some 4000 small enterprises transited to the private sector of economy. However, only every fifth company became fully private.
The second stage of the economic reform took place in 1993-1996. All public enterprises were divided into four groups with four different models of privatization applied.
The four principal models of privatization applied by the Republican Government were:
- Sale of small enterprises at local auctions;
- Privatization of medium and large enterprises;
- Individual privatization projects for large enterprises;
- Privatization of agricultural enterprises.
Financial and Industrial Groups
In the transformation period groups of influence could concentrate control over the key resources of the Kazakh economy. Now they play a key role in both political and economic life of the country.
The main financial and industrial groups of Kazakhstan are as follows:
Group of Timur Kulibayev – Nurzhan Subkhanberdin
Group of Rakhat Aliyev
Group of Alexander Mashkevich
Group of Mukhtar Ablyazov
Group of Nurlan Balgimbayev
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