GDP of Kazakhstan: structure and dynamics. Kazakhstan: GDP per capita

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55

In terms of economic indicators, Kazakhstan is the most profitable and successful country in Central Asia. It is one of the ten largest financial powers in Europe. The main sources of income are the extraction of oil and minerals, as well as mechanical engineering and the metalworking industry. It is noteworthy that Kazakhstan is perhaps the only country on the continent in which agriculture is developing and flourishing at an incredible pace.

Economic Development

After the collapse of the USSR, the republic experienced a significant financial decline, which lasted until 1995. At that time, the economy was on the verge of high inflation. The expenditure part of the budget significantly exceeded the income. There was an imbalance in pricing policy. The authorities could not find leverage to control the monopoly of manufacturers. All this led to a sharp rise in prices and unemployment. The credit system was just beginning to emerge. In 1993, a national currency was introduced on the territory of Kazakhstan, which was called the tenge. Artificial stabilization of the exchange rate led to a collapse in production and inflation. Thus, the decline in GDP amounted to more than 9%. In 1995 there wasestablished credit system. This monetary policy was able to curb hyperinflation to 60%.

In 2007, there was a sharp increase in Kazakhstan's GDP by almost 30%. Since then, this figure has only increased. In recent years, GDP growth has slowed slightly. The main reason for this is the instability of the global macroeconomics. An effective policy in the domestic market helps to normalize the overall financial background. Also, a significant share of budget profitability is profit from high yields.

Economic indicators

The maximum devaluation threshold in the history of Kazakhstan was observed in 1999. Then this figure was about 59%. The reason for the devaluation was the final stage of the transition to the tenge. In 2009, the level of falling prices stopped at 17%. As for the inflation rate, in the early 1990s it was about 210%. In the future, the economic background within the country was stabilized by the national currency. The minimum level of inflation was observed in 1998 - 1.9%. Recently, the indicator has not exceeded 6%.

External debt of Kazakhstan varies within 150 billion dollars. The amount is growing every year. A few years ago, the debt was about $108 billion.

Industry Feature

One of the main profitable industries is mechanical engineering. Profit from this area of activity is slightly less than 8% of Kazakhstan's GDP. Local manufacturers produce mining equipmentindustry, transport industry. In 2012 alone, more than 12,000 Kazakh cars entered the world market.

Ferrous metallurgy accounts for 13% of the country's total GDP. Up to 8 billion tons of iron ore are mined and processed annually by Kazakh plants. Non-ferrous metallurgy is in no way inferior to ferrous metallurgy in terms of its specific share in GDP. Its coefficient is 12%. Mainly smelters process aluminium, zinc, lead and copper. A narrower production is magnesium, titanium and other rare ores. Today, Kazakhstan is one of the main exporters of copper in the world. Most of the products are bought by Germany and Italy. In addition, about 170 gold deposits have been registered in the country.

The structure of Kazakhstan's GDP is not without reason based on industry. Take even the chemical industry. In terms of the production of phosphorus and synthetic substances, Kazakhstan ranks third in Eurasia. The petrochemical industry produces a wide range of various technical substances, such as kerosene, boiler and diesel fuel, gasoline, etc. In addition, the republic has a well-established production of building materials: slate, cement, pipes, linoleum, faience, tiles, kaolin, convectors, radiators, crushed stone, etc. This industry occupies 4% of the country's GDP. Recently, the development of the energy sector has been taking big steps.

Agricultural profitability

The share of Kazakhstan's GDP devoted to this type of activity is more than 5%. In recent years thisindex has risen sharply. Back in the mid-1990s, agriculture accounted for only 1.8% of total GDP. Since 2002, billions of dollars have been directed to the development of this industry.

The most important component of the local "agriculture" is the cultivation of potatoes, oilseeds and melons. The total yield over the past 10 years has increased 6 times. It would be useful to note the increase in profits from the sale of vegetables and fruits. Of the grain crops, wheat, barley and oats are considered the most profitable. In the west of the republic, sowing of corn and sunflower is widespread. Cattle breeding shows a negative trend. In recent years, the number has been reduced by almost half.

Foreign trade indicators

First of all, exports affect the level of Kazakhstan's GDP. The main trading partners of the republic are the B altic countries and the CIS. They account for about 59% of all exports. The first place in the list is occupied by Russia. Successfully trade relations are developing with foreign countries such as Germany, Czech Republic, Turkey, Italy, Switzerland, USA, England, South Korea. Annual trade turnover between Kazakhstan and Russia is about 30 billion dollars. Most of the exports are oil products, followed by metals and ores. It is noteworthy that only 20% is allocated to all other industries and services.

The main import products are crude oil, equipment, vehicles, weapons, food products.

Financial system

The average level of Kazakhstan's GDP is growing every year. Such a positive trend is achieved thanks to an efficient domestic financial system. Back in 1998, a large-scale pension reform was carried out in the country. At the next stage, the stock market underwent a change. By mid-2014, there were already 38 national banks operating in the country.

It is worth noting that all significant financial transactions are carefully checked by the relevant State committees and services. The economic system in Kazakhstan is under strict supervision of the authorities. The most serious financial crisis in the republic occurred in 2008. However, the decline in GDP lasted only two reporting quarters.

Economic growth

2014 was marked by a serious slowdown in the procession of supply and demand for the country. As a result, negative dynamics of Kazakhstan's GDP was observed. This figure fell from 6% to 4%. This was also due to the instability of the global oil industry. A negative trend in demand for metallurgical products from Russia and China was also noticed. All this had a negative impact not only on Kazakhstan's GDP, but also on the entire credit system.

To normalize the country's macroeconomics, the authorities decided to pursue a stimulating tax policy. In addition, after the depreciation of the tenge, the Government of Kazakhstan allocated more than 5.5 billion dollars to support social articles and industry.

Financial reforms

OnToday, the Government of the Republic is trying to prevent the negative impact of the economic slowdown on the labor market. Otherwise, this will lead to the bankruptcy of small businesses and will directly affect the most vulnerable categories of citizens.

Various social programs come into force to artificially stabilize the economy and the level of GDP in the country. Financing comes from the National Fund and from the partial redistribution of public funds. Other reforms include a new package of measures to attract foreign investors and support small businesses.

Prospects and risks

Recently, there has been a negative change in Kazakhstan's GDP. Improvement of the situation is predicted only for 2017. As of 2014, GDP growth stopped at 4.1%. The dynamics of the development of this indicator will fall every day until the global economic environment finds the levers of stabilization.

Affects the internal financial risks of Kazakhstan and geopolitical tensions in the regions. The most negative factor in the decline in the republic's GDP is the conflict between Russia and Ukraine. This makes it very difficult to find stable investors for the long term.

GDP dynamics in 2015

Currently, there is an artificial stagnation of the economic component of the Republic of Kazakhstan. GDP per capita is about 13.6 thousand dollars. This indicator in 2015 can significantly decrease. According to experts' forecasts, the country's GDP growth shouldfall to 2%. Nevertheless, a positive trend of 5.5% is expected already next year. Until the end of this year, an increase in GDP is not forecast, as oil prices and exports will continue to fall.