Economy - overview:
Kazakhstan, geographically the largest of the former Soviet republics, excluding Russia, 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.
Kazakhstan's vast hydrocarbon and mineral reserves form the backbone of its economy. Chevron-led Tengizchevroil announced a $36.8 billion expansion of Kazakhstan’s premiere Tengiz oil field in July 2016. 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 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. In part due to weak commodity prices, Kazakhstan’s exports to EAEU countries declined 23.5% in 2016. Imports from EAEU countries to Kazakhstan declined 13.7%.
The economic downturn of its EAEU partner, Russia, and the decline in global commodity prices from 2014 to 2015 contributed to an economic slowdown in Kazakhstan, which continues to experience its slowest economic growth since the financial crises of 2008-09. 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.
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 low liquidity, 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, who turned 77 in 2017, has not announced whether he will seek reelection in 2019.
GDP (purchasing power parity):
$474.3 billion (2017 est.)
$459 billion (2016 est.)
$454.1 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 42
GDP (official exchange rate):
$156.2 billion (2017 est.)
GDP - real growth rate:
3.3% (2017 est.)
1.1% (2016 est.)
1.2% (2015 est.)
country comparison to the world: 101
GDP - per capita (PPP):
$26,100 (2017 est.)
$25,600 (2016 est.)
$25,700 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 77
Gross national saving:
22.8% of GDP (2017 est.)
22.3% of GDP (2016 est.)
26.6% of GDP (2015 est.)
country comparison to the world: 66
GDP - composition, by end use:
household consumption: 57.5%
government consumption: 12.6%
investment in fixed capital: 23.9%
investment in inventories: 0.7%
exports of goods and services: 35.2%
imports of goods and services: -30% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 4.8%
industry: 34.4%
services: 60.8% (2017 est.)
Agriculture - products:
grain (mostly spring wheat and barley), potatoes, vegetables, melons; livestock
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:
4.9% (2017 est.)
country comparison to the world: 49
Labor force:
9.147 million (2017 est.)
country comparison to the world: 54
Labor force - by occupation:
agriculture: 18.1%
industry: 20.4%
services: 61.6% (2017 est.)
Unemployment rate:
5% (2017 est.)
5% (2016 est.)
country comparison to the world: 68
Population below poverty line:
2.7% (2015 est.)
Household income or consumption by percentage share:
lowest 10%: 4.3%
highest 10%: 22% (2013 est.)
Distribution of family income - Gini index:
26.3 (2013 est.)
31.5 (2003 est.)
country comparison to the world: 147
Budget:
revenues: $34.13 billion
expenditures: $37.89 billion (2017 est.)
Taxes and other revenues:
21.9% of GDP (2017 est.)
country comparison to the world: 137
Budget surplus (+) or deficit (-):
-2.4% of GDP (2017 est.)
country comparison to the world: 96
Public debt:
27.5% of GDP (2017 est.)
26.2% of GDP (2016 est.)
country comparison to the world: 171
Fiscal year:
calendar year
Inflation rate (consumer prices):
7.3% (2017 est.)
14.6% (2016 est.)
country comparison to the world: 194
Central bank discount rate:
11% (10 April 2017 est.)
12% (9 January 2017 est.)
country comparison to the world: 19
Commercial bank prime lending rate:
14.1% (31 December 2017 est.)
15.33% (31 December 2016 est.)
country comparison to the world: 49
Stock of narrow money:
$15.58 billion (31 December 2017 est.)
$13.81 billion (31 December 2016 est.)
country comparison to the world: 71
Stock of broad money:
$42.11 billion (31 December 2017 est.)
$37.78 billion (31 December 2016 est.)
country comparison to the world: 73
Stock of domestic credit:
$55.99 billion (31 December 2017 est.)
$55.53 billion (31 December 2016 est.)
country comparison to the world: 64
Market value of publicly traded shares:
$744 million (31 December 2016 est.)
$4.737 billion (31 December 2015 est.)
$26.23 billion (31 December 2013 est.)
country comparison to the world: 109
Current account balance:
$-8.291 billion (2017 est.)
$-8.518 billion (2016 est.)
country comparison to the world: 182
Exports:
$44.11 billion (2017 est.)
$37.3 billion (2016 est.)
country comparison to the world: 52
Exports - commodities:
oil and oil products, natural gas, ferrous metals, chemicals, machinery, grain, wool, meat, coal
Exports - partners:
Italy 20.3%, China 11.5%, Russia 9.5%, Netherlands 8.9%, Switzerland 7.3%, France 4.9% (2016)
Imports:
$31.09 billion (2017 est.)
$27.87 billion (2016 est.)
country comparison to the world: 61
Imports - commodities:
machinery and equipment, metal products, foodstuffs
Imports - partners:
Russia 36.2%, China 14.5%, Germany 5.7%, US 5.1% (2016)
Reserves of foreign exchange and gold:
$31.44 billion (31 December 2017 est.)
$29.53 billion (31 December 2016 est.)
country comparison to the world: 50
Debt - external:
$159.2 billion (31 December 2017 est.)
$163.8 billion (31 December 2016 est.)
country comparison to the world: 41
Stock of direct foreign investment - at home:
$156.2 billion (31 December 2017 est.)
$143.2 billion (31 December 2016 est.)
country comparison to the world: 35
Stock of direct foreign investment - abroad:
$34.74 billion (31 December 2017 est.)
$32.74 billion (31 December 2016 est.)
country comparison to the world: 48
Exchange rates:
tenge (KZT) per US dollar -
326.3 (2017 est.)
342.13 (2016 est.)
342.13 (2015 est.)
221.73 (2014 est.)
179.19 (2013 est.)