Kazakhstan is ranked 11th among 43 countries in the Asia–Pacific region, and its overall score is above the regional and world averages. This chart shows trends in the gross domestic product of Kazakhstan at market prices estimated by the International Monetary Fund, with figures in millions of Kazakhstani tenge. The following table shows the main economic indicators in 1980–2017.
Kazakhstan's industrial sector rests on the extraction and processing of these natural resources. The breakup of the USSR and the collapse of demand for Kazakhstan's traditional heavy industry products have resulted in a sharp decline of the economy since 1991, with the steepest annual decline occurring in 1994.
To that end, in 2017 KazAgro negotiated with the European Investment Bank (EIB) a €200 million loan for a period of 15 years. Kazakhstan attracted $330 billion in foreign direct investment (FDI) from more than 120 countries since 1991 until 2019.
8,691 foreign companies operating in the Kazakhstan are small businesses. As of the beginning of 2016, the World Bank invested over $6.8 billion in Kazakhstan since 1992.
Kazakhstan's industrial sector rests on the extraction and processing of these natural resources. The breakup of the USSR and the collapse of demand for Kazakhstan's traditional heavy industry products have resulted in a sharp decline of the economy since 1991, with the steepest annual decline occurring in 1994.
In 1995–97 the pace of the government program of economic reform and privatization quickened, resulting in a substantial shifting of assets into the private sector.
North Dakota exports mostly machinery to Kazakhstan, the eighth largest destination for North Dakotan exports; machinery exports increased from $22,000 to $25 million between 2000 and 2005. The percentage of high-tech exports (as a share of manufactured exports) from Kazakhstan has grown from just 4.46% in 1995 to 37.17% in 2014.
Kazakhstan was granted "the market economy country" status by the EU and the US, in 2000 and 2002 respectively. The December 1996 signing of the Caspian Pipeline Consortium agreement to build a new pipeline from western Kazakhstan's Tengiz Field to the Black Sea increases prospects for substantially larger oil exports in several years.
Kazakhstan's economy turned downward in 1998 with a 2.5% decline in GDP growth due to slumping oil prices and the August financial crisis in Russia.
A bright spot in 1999 was the recovery of international petroleum prices, which, combined with a well-timed tenge devaluation and a bumper grain harvest, pulled the economy out of recession. Current GDP per capita shrank by 26% in the Nineties.
GDP grew 9.6% in 2000, up from 1.7% in 1999.
The increased economic growth also led to a turn-around in government finances, with the budget moving from a cash deficit of 3.7% of GDP in 1999 to 0.1% surplus in 2000.
In 2000, Kazakhstan produced 35,252,000 metric tons of oil (700,000 barrels per day), a 17.4% increase over 1999's 30,025,000 tons.
It exported 28,883,000 tons of oil in 2000, up 38.8% from 20,813,000 tons in 1999.
In 2000, production reached 11.5 km³ of natural gas, up from 8.2 km³ in 1999. Kazakhstan has the potential to be a world-class oil exporter in the medium term.
The Ministry of Finance of the Republic of Kazakhstan started issuing licenses for gambling activity in 1999.
Kazakhstan was granted "the market economy country" status by the EU and the US, in 2000 and 2002 respectively. The December 1996 signing of the Caspian Pipeline Consortium agreement to build a new pipeline from western Kazakhstan's Tengiz Field to the Black Sea increases prospects for substantially larger oil exports in several years.
In the 2000s, Kazakhstan's economy grew sharply, aided by increased prices on world markets for Kazakhstan's leading exports—oil, metals and grain.
GDP grew 9.6% in 2000, up from 1.7% in 1999.
The increased economic growth also led to a turn-around in government finances, with the budget moving from a cash deficit of 3.7% of GDP in 1999 to 0.1% surplus in 2000.
In 2000, Kazakhstan produced 35,252,000 metric tons of oil (700,000 barrels per day), a 17.4% increase over 1999's 30,025,000 tons.
It exported 28,883,000 tons of oil in 2000, up 38.8% from 20,813,000 tons in 1999.
In 2000, production reached 11.5 km³ of natural gas, up from 8.2 km³ in 1999. Kazakhstan has the potential to be a world-class oil exporter in the medium term.
North Dakota exports mostly machinery to Kazakhstan, the eighth largest destination for North Dakotan exports; machinery exports increased from $22,000 to $25 million between 2000 and 2005. The percentage of high-tech exports (as a share of manufactured exports) from Kazakhstan has grown from just 4.46% in 1995 to 37.17% in 2014.
Production in 2001 has been growing at roughly 20%, on target to meet the government's forecast of 40,100,000 tons of oil (800,000 barrels per day).
Kazakhstan was granted "the market economy country" status by the EU and the US, in 2000 and 2002 respectively. The December 1996 signing of the Caspian Pipeline Consortium agreement to build a new pipeline from western Kazakhstan's Tengiz Field to the Black Sea increases prospects for substantially larger oil exports in several years.
North Dakota exports mostly machinery to Kazakhstan, the eighth largest destination for North Dakotan exports; machinery exports increased from $22,000 to $25 million between 2000 and 2005. The percentage of high-tech exports (as a share of manufactured exports) from Kazakhstan has grown from just 4.46% in 1995 to 37.17% in 2014.
In 2006, extremely high GDP growth had been sustained, and grew by 10.6%.
The government also gradually reduced VAT from 16% in 2006 to 12% in 2009. As of 30 September 2014, total foreign investment in Kazakhstan reached US$211.5 billion.
In 2007 the government of Kazakhstan has introduced a new law which ordered banning gambling on the territory of Kazakhstan besides 2 places which were to become the examples of Russia's special gambling zones.
The first legal casino opened after the introduction of new law was Casino Flamingo in Kapchagay, which was opened on October 1st 2008. In 2018, the income of gambling companies in Kazakhstan amounted to 19.5 billion tenge.
The gross inflow of foreign direct investment in 2016 grew by 40% compared to 2015 and surpassed the previous record of 2008.
The government also gradually reduced VAT from 16% in 2006 to 12% in 2009. As of 30 September 2014, total foreign investment in Kazakhstan reached US$211.5 billion.
In 2012, the World Economic Forum listed corruption as the biggest problem in doing business in the country, while the World Bank listed Kazakhstan as a corruption hotspot, on a par with Angola, Bolivia, Kenya, Libya and Pakistan.
These funds were invested in development of roads and social infrastructure, increasing of competitiveness of SME's, education, healthcare, environment protection, etc. In 2012, Kazakhstan conducted the first review of the OECD investment standards, which resulted in 12 recommendations on how to improve the investment climate of the country.
| gini = 27.5 (2017, World Bank) | hdi = | labor = | occupations = | unemployment = The economy of Kazakhstan is the largest in Central Asia in both absolute and per capita terms, but the currency saw a sharp depreciation between 2013 and 2016.
This shows a large disadvantage of women in business. The GDP per capita in current USD in Kazakhstan declined by about 40% between 2013 compared and 2017. ==Privatisation 2016–2020== In December 2015, Kazakhstan Government approved new privatization plan for 2016 – 2020.
The country experienced a slowdown in economic growth from 2014 sparked by falling oil prices and the effects of the Ukrainian crisis The country's currency was devalued by 19% in 2014 and by 22% in 2015. In 2017, the World Economic Forum compiled its Global Competitiveness Ranking ranking Kazakhstan 57th out of 144 countries.
The expected annual output makes around 3,000 cars. The Kazakhstan's car industry was developing rapidly in 2014 producing $2 billion worth of products annually.
North Dakota exports mostly machinery to Kazakhstan, the eighth largest destination for North Dakotan exports; machinery exports increased from $22,000 to $25 million between 2000 and 2005. The percentage of high-tech exports (as a share of manufactured exports) from Kazakhstan has grown from just 4.46% in 1995 to 37.17% in 2014.
In 2017 Kazakhstan was invited by OECD to become Adherent to the OECD Declaration on International Investment and Multinational Enterprises. In June 2014 Kazakhstan's president, Nursultan Nazarbayev, signed into law tax concessions to promote foreign investment, including a 10-year exemption from corporation tax, an 8-year exemption from property tax, and a 10-year freeze on most other taxes.
The government also gradually reduced VAT from 16% in 2006 to 12% in 2009. As of 30 September 2014, total foreign investment in Kazakhstan reached US$211.5 billion.
Kazakhstan plans to raise this indicator to 50% by 2050. ==2014 and 2015 developments== The country experienced a slowdown in economic growth from 2014 sparked by falling oil prices and the effects of the Ukrainian crisis The country devalued its currency by 19% in February 2014.
It is a large-scale privatization program that continues the privatization of 2014 and includes 60 major state-owned companies.
According to Kazakh Finance ministry, the state budget got 6.99 billion tenges ($20.6 million) from the deals reached within the 2014–2016 privatization program as of 20 Sept.
The country experienced a slowdown in economic growth from 2014 sparked by falling oil prices and the effects of the Ukrainian crisis The country's currency was devalued by 19% in 2014 and by 22% in 2015. In 2017, the World Economic Forum compiled its Global Competitiveness Ranking ranking Kazakhstan 57th out of 144 countries.
Kearney's 2015 Global Retail Development Index, Kazakhstan ranked 13 out of 30.
In late March 2015 the two countries signed 33 deals worth $23.6 billion.
Of that total, net foreign Direct Investment constituted US$129.3 billion, with portfolio and other investments comprising the remaining US$82.2 billion. As of July 2015, Kazakhstan attracted $16 billion in the manufacturing industry over the past five years, which is 2.5 times more than over the previous five years.
The volume of new enterprises amounted to 580 billion tenge. In June 2015 – June 2016 the total number of enterprises owned by foreign investors in Kazakhstan increased by 2.3 percent and reached 9,000.
The gross inflow of foreign direct investment in 2016 grew by 40% compared to 2015 and surpassed the previous record of 2008.
The number of foreign businesses operating in Kazakhstan increased 25% in 2016 compared to 2015.
The share of SMEs in Kazakhstan's GDP increased from 24.9% in 2015 to 28.4% in 2018.
Kazakhstan plans to raise this indicator to 50% by 2050. ==2014 and 2015 developments== The country experienced a slowdown in economic growth from 2014 sparked by falling oil prices and the effects of the Ukrainian crisis The country devalued its currency by 19% in February 2014.
Another 22% devaluation occurred in August 2015.
This shows a large disadvantage of women in business. The GDP per capita in current USD in Kazakhstan declined by about 40% between 2013 compared and 2017. ==Privatisation 2016–2020== In December 2015, Kazakhstan Government approved new privatization plan for 2016 – 2020.
| gini = 27.5 (2017, World Bank) | hdi = | labor = | occupations = | unemployment = The economy of Kazakhstan is the largest in Central Asia in both absolute and per capita terms, but the currency saw a sharp depreciation between 2013 and 2016.
According to the Minister of National Economy of Kazakhstan, in nine months of 2016 the GDP growth reached 0.4%.
In the 2016th Index, Kazakhstan ranked as the 4th best developing country for retail investments, scoring 56.5 out of 100.
The volume of new enterprises amounted to 580 billion tenge. In June 2015 – June 2016 the total number of enterprises owned by foreign investors in Kazakhstan increased by 2.3 percent and reached 9,000.
8,691 foreign companies operating in the Kazakhstan are small businesses. As of the beginning of 2016, the World Bank invested over $6.8 billion in Kazakhstan since 1992.
After adopting Law on public – private partnership that extends the use of the mechanism and revising standards of intellectual property protection and the rules of attracting foreign labor, Kazakhstan started a second review of the OECD in 2016. According to Ministry of Investment and Development of Kazakhstan, as of May 2016, attraction of foreign investment in oil refining increased by 80%, food industry – 30%, in engineering – by 7 times.
The Ministry also reported that there were 200 investment projects in country worth more than $40 billion. In mid-2016 a group of companies led by Chevron announced a $36.8 billion investment in Kazakhstan's Tengiz oil field. In the first quarter of 2016, Kazakhstan attracted $2.7 billion in foreign direct investment.
As of September 2016, foreign investments in the Kazakh economy totaled $5.7 billion, which is 4,8% more than during the same period of the previous year. Summarizing 2016, Kazakhstan's Foreign Minister Erlan Idrissov noted that Kazakhstan attracted $20 billion of foreign direct investment during the year.
The gross inflow of foreign direct investment in 2016 grew by 40% compared to 2015 and surpassed the previous record of 2008.
The number of foreign businesses operating in Kazakhstan increased 25% in 2016 compared to 2015.
This shows a large disadvantage of women in business. The GDP per capita in current USD in Kazakhstan declined by about 40% between 2013 compared and 2017. ==Privatisation 2016–2020== In December 2015, Kazakhstan Government approved new privatization plan for 2016 – 2020.
The country experienced a slowdown in economic growth from 2014 sparked by falling oil prices and the effects of the Ukrainian crisis The country's currency was devalued by 19% in 2014 and by 22% in 2015. In 2017, the World Economic Forum compiled its Global Competitiveness Ranking ranking Kazakhstan 57th out of 144 countries.
Kazakhstan scored 31 points out of 100 in Transparency International's 2018 edition of the Corruption Perceptions Index, indicating high levels of corruption. The World Bank Vice President for Europe and Central Asia, Cyril Muller, visited Astana (now known as Nur-Sultan) in January 2017, where he praised the country's progress made during the 25-year partnership with the World Bank.
Muller also talked about Kazakhstan's improved positioning in the World Bank's Doing Business Report 2017, where Kazakhstan ranked 35th out of 190 countries worldwide.
This is 16.1% more than in 2017.
The deals cover different industries, such as oil refining, cars, steel. Kazakhstan's foreign trade turnover in 2018 comprised $93.5bn that is 19.7% more compared to 2017.
Since September 2019, the program selects businesses and assists them with navigating bureaucracy and connecting to foreign markets the government deems a priority, including Germany, Turkey, the United Arab Emirates, Iran, and China. ===National investment strategy=== The Kazakh government approved in August 2017 a national investment strategy, which seeks to increase foreign investments by 26% in five years and create a more favorable investment climate.
In 2017 Kazakhstan was invited by OECD to become Adherent to the OECD Declaration on International Investment and Multinational Enterprises. In June 2014 Kazakhstan's president, Nursultan Nazarbayev, signed into law tax concessions to promote foreign investment, including a 10-year exemption from corporation tax, an 8-year exemption from property tax, and a 10-year freeze on most other taxes.
The top four investors include the Netherlands, the United States, Switzerland and France. Kazakhstan introduced a visa-free regime for citizens of EAEU, OECD, Monaco, Malaysia, United Arab Emirates, and Singapore starting from 2017.
To that end, in 2017 KazAgro negotiated with the European Investment Bank (EIB) a €200 million loan for a period of 15 years. Kazakhstan attracted $330 billion in foreign direct investment (FDI) from more than 120 countries since 1991 until 2019.
Kazakhstan was ranked 54th 2017 Economic Freedom of the World report published by Fraser Institute, but ranks 12 places below on place 66 when adjusted by the Gender Disparity Index, which captures the degree to which women around the world have the same legal rights as men and adjusts the economic freedom score accordingly.
This shows a large disadvantage of women in business. The GDP per capita in current USD in Kazakhstan declined by about 40% between 2013 compared and 2017. ==Privatisation 2016–2020== In December 2015, Kazakhstan Government approved new privatization plan for 2016 – 2020.
Kazakhstan scored 31 points out of 100 in Transparency International's 2018 edition of the Corruption Perceptions Index, indicating high levels of corruption. The World Bank Vice President for Europe and Central Asia, Cyril Muller, visited Astana (now known as Nur-Sultan) in January 2017, where he praised the country's progress made during the 25-year partnership with the World Bank.
GDP growth will depend on the price of oil, as well as the ability to develop new deposits. ====Mining==== Kazakhstan is a leading producer of many mineral commodities, including salt, uranium, ferrochrome, titanium sponge, cadmium, potassium, magnesium, rhenium, copper, bauxite, gallium and zinc. The country was the world's largest producer of uranium in 2018.
The first legal casino opened after the introduction of new law was Casino Flamingo in Kapchagay, which was opened on October 1st 2008. In 2018, the income of gambling companies in Kazakhstan amounted to 19.5 billion tenge.
The deals cover different industries, such as oil refining, cars, steel. Kazakhstan's foreign trade turnover in 2018 comprised $93.5bn that is 19.7% more compared to 2017.
In 2018, Kazakhstan attracted $24 billion of foreign direct investments.
In 2018, Kazakh Invest helped develop more than 70 investment proposals in a variety of industries: metallurgy, petrochemistry, food industry, tourism and other.
The long-term measures of the state program of infrastructure development will help to create a strong platform for new growth. Kazakhstan has identified five priorities for modernization of the state and the economy to maintain competitiveness in the Fourth Industrial Revolution. ==Doing business in Kazakhstan== Kazakhstan was ranked 36th in the Ease of Doing Business report released by the World Bank Group in 2018.
The report's rankings rate ease of regulations for businesses and strength of property rights. The Heritage Foundation, a Washington DC – based research center, ranked Kazakhstan 41st in its Index of Economic Freedom 2018.
Such companies as Kazakhstan Railways, Samruk-Energo, Kazatomprom, Kaspost, KazMunayGas and Air Astana are expected to be sold through IPO. Kazakhstan fell from 32nd to the 38th place in the 2018 IMD World Competitiveness ranking.
The share of SMEs in Kazakhstan's GDP increased from 24.9% in 2015 to 28.4% in 2018.
This placed Kazakhstan ahead of countries such as Iceland (26th place), Austria (27th place), Russia (28th place), Japan (29th place), etc. Kazakhstan has prioritized the development of non-oil sectors of economy, which accounted for 85% of the country's economic growth in 2019. In the first seven months of 2020, Kazakhstan exported significantly more goods than the previous year, including a seven-fold increase in automobile exports.
Since September 2019, the program selects businesses and assists them with navigating bureaucracy and connecting to foreign markets the government deems a priority, including Germany, Turkey, the United Arab Emirates, Iran, and China. ===National investment strategy=== The Kazakh government approved in August 2017 a national investment strategy, which seeks to increase foreign investments by 26% in five years and create a more favorable investment climate.
To that end, in 2017 KazAgro negotiated with the European Investment Bank (EIB) a €200 million loan for a period of 15 years. Kazakhstan attracted $330 billion in foreign direct investment (FDI) from more than 120 countries since 1991 until 2019.
The Foreign Ministry of Kazakhstan plays an important role in attracting foreign investors to the country. In 2019, gross FDI inflow to Kazakhstan amounted to $24.1 billion.
In 2019, mining and metallurgy accounted for the largest volume of foreign investment – 56.3%.
$3.5 billion of FDI was directed into the manufacturing industry, while trade attracted $3 billion in 2019. The top five countries investing the most into the economy of Kazakhstan remained unchanged in 2019.
Sectors of economy that experienced the highest growth included construction (6.9%), agriculture (4.9%), and transport sector (4.0%). Kazakhstan was ranked 25th out of 190 countries in the World Bank's Doing Business 2020 report.
The country improved its position by 3 points, from 28 to 25, in the 2020 ranking compared to the previous year.
This placed Kazakhstan ahead of countries such as Iceland (26th place), Austria (27th place), Russia (28th place), Japan (29th place), etc. Kazakhstan has prioritized the development of non-oil sectors of economy, which accounted for 85% of the country's economic growth in 2019. In the first seven months of 2020, Kazakhstan exported significantly more goods than the previous year, including a seven-fold increase in automobile exports.
Agriculture, construction, and manufacturing all saw increases in production in the first eight months of the year. The biggest growth in 2020 occurred in the automotive industry (+53.6%), pharmaceuticals (+39.7%), processed metal products (+19.5%), mechanical engineering (+16.5%), as well as in light industry (+16.4%).
It included creating a business plan, financial model and teaser development. In order to facilitate foreign investment, Kazakhstan launched in 2020 an online portal elicense.kz, which allows to conclude investment contracts online reducing red tape.
The development of SME's is an integral part of Kazakhstan's Business Road Map 2020 state programme.
This shows a large disadvantage of women in business. The GDP per capita in current USD in Kazakhstan declined by about 40% between 2013 compared and 2017. ==Privatisation 2016–2020== In December 2015, Kazakhstan Government approved new privatization plan for 2016 – 2020.
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