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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:

  1. Sale of small enterprises at local auctions;
  2. Privatization of medium and large enterprises;
  3. Individual privatization projects for large enterprises;
  4. 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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