Economy of Kazakhstan
2010: The current state of the economy of Kazakhstan
• In 2010, GDP growth rate reached 7%
• Overall industrial growth reached 10%
• Growth in the mining sector reached 5.3%
• The unemployment rate has fallen to its pre-crisis rate 5.5%
• Real income grew by 6.5%
• The most dynamic growth was in manufacturing - 18.4%
• The level of lending to the economy contracted by 2%
• Retail sales increased by 12.3%
• Gross international reserves increased by 24% to 58.9 U.S. dollars
The main directions of the economic development:
1. Diversification of the economy - the development of non-primary export-oriented industries
2. Long-term investments in human capital, health, education and social development
2000-2007: The period of growth
• Average annual GDP growth from 2000 to 2007 amounted to 10.2%
• The main engine of growth of GDP is oil and gas sectors
• The construction and financial sectors have become major engines of growth
• The current structure of GDP is at 44-46% of goods and services from 54-56%
• Average annual growth rate from 2000 to 2007 amounted to 9.5%
• The proportion of the industrial sector in GDP has fallen over this period from16.5% in 2000 to 11.5% in 2007
• There is a substantial increase in commodity prices
• The main sectors of industry are industrial metals (40%), food industry (20-22%)and construction materials
| in % (2000) | in % (2007) | |
| Agriculture (-2,5) | 8,1 | 5,7 |
| The mining industry (+2,1) | 13 | 15,1 |
| Processing industry (-5) | 16,5 | 11,5 |
| Construction (+4,3) | 5,2 | 9,4 |
| Trade (=) | 12,4 | 12,4 |
| Transportation and Communications (=) | 11,5 | 11,5 |
| Finance (+2,8) | 3,1 | 5,9 |
| Real Estate (+4) | 10,8 | 14,8 |
| Other sectors (-5,6) | 19,3 | 13,8 |
• For the last 7 years the volume of loans increased by 48 times
• Most of these loans were directed to the construction, real estate and trade
• During the same period, consumer loans also experienced a boom
• The interest rate remained at a high level, about 14-16%
• In 2000-2007 the total external debt if Kazakhstan increased by almost 8 times and reached 96.8 billion U.S. dollars
• By the end of 2007, 96% of external debt owned by the private sector, of which more than 44 billion U.S. dollars of debt owned by the banking sector
• During the rapid economic growth and a favorable situation in the markets created by the National Fund, which collects state-owned oil revenues
• The National Fund was "Airbag" and provided a stable socio-economic development of Kazakhstan
• In late 2007, more than 21 billion U.S. dollars had been accumulated in the National Fund
• In 2000-2007, Kazakhstan's economy has achieved rapid development
• Have been created more than 1.5 million new workplaces
• A significant accumulation of international reserves and assets of the Fund
2008-2009: Financial Crisis
In autumn 2007 the Government, National Bank of Kazakhstan and Agency of Financial Supervision adopted an action plan to mitigate the negative effects of increasing disorder in the world financial markets.
The total cost of the program was U.S. $ 4.5 billion
• 1,5 billion U.S. dollars allocated for the construction sector through commercial banks to protect participants of shared construction
• 1,3 billion U.S. dollars allocated to SME’s as engines of growth and employment
• 1,1 billion U.S. dollars sent to the agriculture and food security
The second joint anti-crisis package of 10 billion U.S. dollars has been made by the National Fund. The second package is aimed at strengthening existing measures and support the most affected sectors of the economy
So, 10 billion U.S. dollars were directed to:
• to stabilize the financial system - U.S. $ 4 billion
• to support the real estate and construction sector - U.S. $ 3 billion
• to support the SME - U.S. $ 1 billion
• to support the agricultural sector - U.S. $ 1 billion
• the implementation of industrial and infrastructure projects - U.S. $ 1 billion
The result achieved in 2009, enabled to:
-Provide a positive economic growth: annual GDP growth of 1.2%
-Prevent a significant rise in unemployment, by the end of the year fell to 6.6%
-To ensure confidence in the financial system: in comparison with 2007, in 2009, deposits increased by 38%
Prevent falling incomes: in 2009 the real earnings of the population increased by 5.2% compared to 2008
Ensure that the volume of lending to the economy: the volume of credit equal to 5% of GDP (in tenge).
| в % к 2008 году | |
| GDP, including | +1,2 |
| Agriculture | +13,2 |
| Mining industry | +6,5 |
| Processing industry | -4,6 |
| Construction | -4,9 |
| Trade | -2,5 |
| Real estate | +2,2 |
| The rate of unemployment | +6,6 |
| Rate of inflation | +7,3 |
| Loans | +2,5 |
| Deposits | +21,5 |
| External debt of banks | -17,3 |
| Income of population | +5,2 |
| Exports | -38,9 |
| Imports | -25 |
