Kazakhstan Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

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.

Real GDP (purchasing power parity)

$475.18 billion (2020 est.)

$487.87 billion (2019 est.)

$466.86 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

6.13% (2019 est.)

4.41% (2018 est.)

4.38% (2017 est.)

Real GDP per capita

$25,300 (2020 est.)

$26,400 (2019 est.)

$25,500 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$181.194 billion (2019 est.)

Inflation rate (consumer prices)

5.2% (2019 est.)

6% (2018 est.)

7.3% (2017 est.)

Credit ratings

Fitch rating: BBB (2016)

Moody's rating: Baa3 (2016)

Standard & Poors rating: BBB- (2016)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 4.7% (2017 est.)

industry: 34.1% (2017 est.)

services: 61.2% (2017 est.)

GDP - composition, by end use

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.)

Agricultural products

wheat, milk, potatoes, barley, watermelons, melons, linseed, onions, maize, sunflower seed

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

5.8% (2017 est.)

Labor force

8.685 million (2020 est.)

Labor force - by occupation

agriculture: 18.1%

industry: 20.4%

services: 61.6% (2017 est.)

Unemployment rate

4.8% (2019 est.)

4.85% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 3.8%

male: 3.4%

female: 4.2% (2020 est.)

Population below poverty line

4.3% (2018 est.)

Gini Index coefficient - distribution of family income

27.5 (2017 est.)

31.5 (2003)

Household income or consumption by percentage share

lowest 10%: 4.2%

highest 10%: 23.3% (2016)

Budget

revenues: 35.48 billion (2017 est.)

expenditures: 38.3 billion (2017 est.)

Budget surplus (+) or deficit (-)

-1.8% (of GDP) (2017 est.)

Public debt

20.8% of GDP (2017 est.)

19.7% of GDP (2016 est.)

Taxes and other revenues

22.3% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$7.206 billion (2019 est.)

-$138 million (2018 est.)

Exports

$51.75 billion (2020 est.) note: data are in current year dollars

$65.91 billion (2019 est.) note: data are in current year dollars

$67.15 billion (2018 est.) note: data are in current year dollars

Exports - partners

China 13%, Italy 12%, Russia 10%, Netherlands 7%, France 6%, South Korea 5% (2019)

Exports - commodities

crude petroleum, natural gas, copper, iron alloys, radioactive chemicals (2019)

Imports

$44.3 billion (2020 est.) note: data are in current year dollars

$51.5 billion (2019 est.) note: data are in current year dollars

$46.23 billion (2018 est.) note: data are in current year dollars

Imports - partners

Russia 34%, China 24% (2019)

Imports - commodities

packaged medicines, natural gas, cars, broadcasting equipment, aircraft (2019)

Reserves of foreign exchange and gold

$30.75 billion (31 December 2017 est.)

$29.53 billion (31 December 2016 est.)

Debt - external

$159.351 billion (2019 est.)

$163.73 billion (2018 est.)

Exchange rates

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.)

NOTE: The information regarding Kazakhstan on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Kazakhstan 2022 information contained here. All suggestions for corrections of any errors about Kazakhstan 2022 should be addressed to the CIA or the source cited on each page.