In 2018, Kazakhstan had a GDP of $179.332 billion and an annual growth rate of 4.5%. Per capita, Kazakhstan's GDP stood at $9,686. Buoyed by high world
crude oil prices, GDP growth figures were between 8.9% and 13.5% from 2000 to 2007 before decreasing to 1% to 3% during the
2008 financial crisis, and then rising again from 2010. Other major exports of Kazakhstan include wheat, textiles, and livestock. Kazakhstan is a leading exporter of
uranium. Kazakhstan's economy grew by 4.6% in 2014. The country experienced a slowdown in economic growth from 2014 sparked by a falling
price of oil and the effects of the
Russo-Ukrainian War. The country devalued its currency by 19% in February 2014. Another 22% devaluation occurred in August 2015. Kazakhstan was the first former Soviet Republic to repay all of its debt to the International Monetary Fund, 7 years ahead of schedule. Kazakhstan weathered the
2008 financial crisis by combining fiscal relaxation with monetary stabilization. In 2009, the government introduced large-scale support measures such as the recapitalization of banks and support for the real estate and agricultural sectors, as well as for
small and medium enterprises (SMEs). The total value of the stimulus programs amounted to $21 billion, or 20% of the country's GDP, with $4 billion going to stabilize the financial sector. During the
Great Recession, Kazakhstan's economy contracted by 1.2% in 2009, but increased to 7.5% and 5% in 2011 and 2012, respectively. Kazakhstan's government continued to follow a conservative fiscal policy by controlling budget spending and accumulating oil revenue savings in its Oil Fund – Samruk-Kazyna. The
2008 financial crisis forced Kazakhstan to increase its public borrowing to support the economy. Public debt increased to 13.4% in 2013 from 8.7% in 2008. Between 2012 and 2013, the government achieved an overall fiscal surplus of 4.5%. In March 2002 the
US Department of Commerce granted Kazakhstan
market economy status under
US trade law. This change in status recognized substantive market economy reforms in the areas of currency
convertibility, wage rate determination, openness to foreign investment, and government control over the means of production and allocation of resources. In September 2002, Kazakhstan became the first country in the
CIS to receive an investment grade
credit rating from a major international
credit rating agency. By late December 2003, Kazakhstan's gross foreign debt was about $22.9 billion. Total governmental debt was $4.2 billion, 14% of GDP. There has been a reduction in the ratio of debt to GDP. The ratio of total governmental debt to GDP was 21.7% in 2000, 17.5% in 2001, and 15.4% in 2002. In 2019, it rose to 19.2%. is Kazakhstan's only seaport on the
Caspian Sea. On 29 November 2003 the Law on Changes to Tax Code, which reduced
tax rates, was adopted. The
value added tax fell from 16% to 15%, the social tax, payable by all employers, from 21% to 20%, and the personal
income tax from 30% to 20%. On 7 July 2006, the personal income tax was reduced even further to a flat rate of 5% for personal income in the form of dividends and 10% for other personal income. Kazakhstan furthered its reforms by adopting a new land code on 20 June 2003 and a new customs code on 5 April 2003. Kazakhstan instituted a pension reform program in 1998. By January 2012 the pension assets were about $17 billion (KZT 2.5 trillion). There are 11 savings pension funds in the country. The State Accumulating Pension Fund, the only state-owned fund, was
privatized in 2006. The country's unified financial regulatory agency oversees and regulates pension funds. The growing demand of pension funds for investment outlets triggered the development of the debt
securities market. Pension fund capital is being invested almost exclusively in corporate and government
bonds, including the government of Kazakhstan Eurobonds. The government of Kazakhstan was studying a project to create a unified national pension fund and transfer all the accounts from the private pension funds into it. Kazakhstan climbed to 41st on the 2018 Economic Freedom Index published by
The Wall Street Journal and
The Heritage Foundation.
Foreign trade Kazakhstan's increased role in global trade and central positioning on the
new Silk Road gave the country the potential to open its markets to billions of people. Kazakhstan joined the
World Trade Organization in 2015. Kazakhstan's foreign trade turnover in 2018 was $93.5 billion, which is 19.7% more than in 2017. Exports in 2018 reached $67 billion (up 25.7% in comparison to 2017) and imports were $32.5 billion (up 9.9% in comparison to 2017). Exports accounted for 40.1% of Kazakhstan's gross domestic product (GDP) in 2018. Kazakhstan exports 800 products to 120 countries.
Agriculture Agriculture accounts for approximately 5% of Kazakhstan's GDP. Chief livestock products are dairy products, leather, meat, and wool. The country's major crops include wheat,
barley, cotton, and rice. Wheat exports, a major source of
hard currency, rank among the leading commodities in Kazakhstan's export trade. In 2003, Kazakhstan harvested 17.6 million tons of grain in gross, 2.8% higher compared to 2002. Kazakhstani agriculture still has many environmental problems from mismanagement during its years in the Soviet Union. Some
Kazakh wine is produced in the mountains to the east of Almaty.
Energy in the Caspian Sea region. Energy has been the leading economic sector. Production of crude oil and
natural gas condensate from the
oil and gas basins of Kazakhstan amounted to in 2012 up from in 2003. Kazakhstan raised oil and gas condensate exports to 44.3 million tons in 2003, 13% higher than in 2002. Gas production in Kazakhstan in 2003 amounted to , up 22.7% compared to 2002, including natural gas production of . Kazakhstan holds about of proven recoverable oil reserves and of gas. Kazakhstan is the 19th largest oil-producing nation in the world. Kazakhstan's oil exports in 2003, were valued at more than $7 billion, representing 65% of overall exports and 24% of the GDP. Major oil and gas fields and recoverable
oil reserves are
Tengiz with ;
Karachaganak with and of natural gas; and
Kashagan with 7 to .
KazMunayGas (KMG), the national oil and gas company, was created in 2002 to represent the interests of the state in the oil and gas industry. The
Tengiz Field was jointly developed in 1993 as a 40-year
Tengizchevroil venture between
Chevron Texaco (50%), US
ExxonMobil (25%),
KazMunayGas (20%), and
LukArco (5%). The
Karachaganak natural gas and gas condensate field is being developed by
BG,
Agip, ChevronTexaco, and
Lukoil. Also Chinese oil companies are involved in Kazakhstan's oil industry. Kazakhstan launched the Green Economy Plan in 2013. It committed Kazakhstan to meet 50% of its energy needs from alternative and renewable sources by 2050. The green economy was projected to increase GDP by 3% and create some 500,000 jobs. The government set prices for energy produced from renewable sources. The price of 1 kilowatt-hour for energy produced by wind power plants was set at 22.68 tenge ($0.12), for 1 kilowatt-hour produced by small hydro-power plants 16.71 tenges ($0.09), and from biogas plants 32.23 tenges ($0.18).
Infrastructure Railways provide 68% of all cargo and passenger traffic to over 57% of the country. There are in common carrier service, excluding industrial lines. of gauge, electrified, in 2012. In July 2017, Alstom opened its first locomotive repairing centre in Kazakhstan. It is the only repairing centre in Central Asia and the Caucasus.
Astana Nurly Zhol railway station, the most modern railway station in Kazakhstan, was opened in Astana on 31 May 2017. According to Kazakhstan Railways (KTZ), the 120,000m2 station was expected to be used by 54 trains and would have the capacity to handle 35,000 passengers a day. There is a small
metro system in
Almaty. Second and third metro lines were planned for the future. The second line would intersect with the first line at
Alatau and
Zhibek Zholy stations. The
Astana Metro system has been under construction, but was abandoned at one point in 2013. In May 2015, an agreement was signed for the project to be resumed. There is an tram network, which began service in 1965 with, as of 2012, 20 regular and three special routes. The
Khorgos Gateway dry port is one of Kazakhstan's primary
dry ports for handling trans-Eurasian trains, which travel more than between China and Europe. The Khorgos Gateway dry port is surrounded by Khorgos Eastern Gate SEZ, which officially commenced operations in December 2016. In 2009 the
European Commission blacklisted all Kazakh air carriers with a sole exception of
Air Astana. Thereafter, Kazakhstan took measures to modernise and revamp its air safety oversight. In 2016 the European air safety authorities removed all Kazakh airlines from the blacklist, saying there was "sufficient evidence of compliance" with international standards by Kazakh Airlines and the Civil Aviation Committee.
Tourism , view from Mount Bolectau ski resort in Almaty Kazakhstan is the
ninth-largest country by area and the largest landlocked country in the world. As of 2014 tourism accounted for 0.3% of Kazakhstan's GDP, but the government had plans to increase it to 3% by 2020. According to the
World Economic Forum's
Travel and Tourism Competitiveness Report of 2017, travel and tourism industry GDP in Kazakhstan was $3.08 billion or only 1.6% of total GDP. The WEF ranked Kazakhstan 80th in its 2019 report. In 2017 Kazakhstan ranked 43rd in the number of tourist arrivals. In 2014
The Guardian described tourism in Kazakhstan as "hugely underdeveloped," despite the country's mountain, lake, and desert landscapes. The Kazakh government, long characterized as authoritarian with a history of human rights abuses and suppression of political opposition,
Foreign direct investment Kazakhstan has attracted $330 billion in foreign direct investment (FDI) from more than 120 countries since its independence (1991). In 2015, the US State Department said Kazakhstan was widely considered to have the best investment climate in the region. In 2014, President Nazarbayev signed into law tax concessions to promote foreign direct investment which included a 10-year exemption from corporation tax, an eight-year exemption from property tax, and a 10-year freeze on most other taxes. Other incentives include a refund on capital investments of up to 30% once a production facility is in operation. In 2018, $24 billion of FDI was directed into Kazakhstan, a significant increase since 2012. In 2014 the
European Bank of Reconstruction and Development (EBRD) and Kazakhstan created the partnership for Re-Energizing the Reform Process in Kazakhstan to work with international financial institutions to channel US$2.7 billion provided by the Kazakh government into important sectors of Kazakhstan's economy. As of May 2014 Kazakhstan had attracted $190 billion in gross foreign investments since its independence in 1991 and it led the CIS countries in terms of FDI attracted per capita. The OECD 2017 Investment Policy Review noted that "great strides" had been made to open up opportunities to foreign investors and improve policy to attract FDI. China is one of the main economic and trade partners of Kazakhstan. In 2013, China launched the
Belt and Road Initiative (BRI) in which Kazakhstan functions as a transit hub.
Banking The banking sector in Kazakhstan experienced a boom-and-bust cycle in the early 21st century. Following a period of rapid growth during the mid-2000s, the industry collapsed in 2008 due to the
2008 financial crisis. Several major banks, including
BTA Bank J.S.C. and Alliance Bank, defaulted shortly thereafter. In the aftermath, the sector underwent significant contraction and restructuring, with total system-wide loans declining from 59% of GDP in 2007 to 39% by 2011. To stabilize the sector, the
National Bank of Kazakhstan introduced a
deposit insurance scheme as part of broader reforms. During this period, several international banks operated in Kazakhstan, including
RBS,
Citibank, and
HSBC. Additionally, foreign institutions such as South Korea's
Kookmin Bank and Italy's
UniCredit entered the Kazakh market through
acquisitions and
equity investments.
Economic competitiveness According to the 2010–11 World Economic Forum in Global Competitiveness Report, Kazakhstan was ranked 72nd in the world in economic competitiveness. One year later, the
Global Competitiveness Report ranked Kazakhstan 50th in most competitive markets. In the 2020 Doing Business Report by the World Bank, Kazakhstan ranked 25th globally and as the number one best country globally for protecting minority investors' rights. Kazakhstan achieved its goal of entering the top 50 most competitive countries in 2013 and has maintained its position in the 2014–2015 World Economic Forum
Global Competitiveness Report that was published at the beginning of September 2014. Kazakhstan is ahead of other states in the CIS in almost all of the report's pillars of competitiveness, including institutions, infrastructure, macroeconomic environment, higher education and training, goods market efficiency, labour market development, financial market development, technological readiness, market size, business sophistication and innovation, lagging behind only in the category of health and primary education. In 2012, Kazakhstan ranked low in an index of the least corrupt countries and the
World Economic Forum listed corruption as the biggest problem in doing business in the country. Kazakhstan has implemented anticorruption reforms that have been recognized by organizations like
Transparency International. In 2011 Switzerland confiscated US$48 million in Kazakhstani assets from Swiss bank accounts, as a result of a bribery investigation in the United States. US officials believed the funds represented bribes paid by American officials to Kazakhstani officials in exchange for oil or prospecting rights in Kazakhstan. Proceedings eventually involved US$84 million in the US and another US$60 million in Switzerland.
Transparency International's 2024
Corruption Perceptions Index, which scored 180 countries on a scale from 0 ("highly corrupt") to 100 ("very clean"), gave Kazakhstan a score of 40. When ranked by score, Kazakhstan ranked 80th among the 180 countries in the Index, where the country ranked first is perceived to have the most honest public sector. For comparison with regional scores, the highest score among Eastern European and Central Asian countries was 53, the average score was 35 and the lowest score was 17. For comparison with worldwide scores, the best score was 90 (ranked 1), the average score was 43, and the worst score was 8 (ranked 180).
Science and technology Research remains largely concentrated in Kazakhstan's largest city and former capital, Almaty, home to 52% of research personnel. Public research is largely confined to institutes, with universities making only a token contribution. Research institutes receive their funding from national research councils under the umbrella of the Ministry of Education and Science. Their output, however, tends to be disconnected from market needs. In the business sector, few industrial enterprises conduct research themselves. One of the most ambitious targets of the State Programme for Accelerated Industrial and Innovative Development, adopted in 2010, is to raise the country's level of expenditure on research and development to 1% of GDP by 2015. By 2013, this ratio stood at 0.18% of GDP. It will be difficult to reach the target as long as economic growth remains strong. Since 2005, the economy has grown faster (by 6% in 2013) than gross domestic expenditure on research and development, which only progressed from PPP$598 million to PPP$714 million between 2005 and 2013. In December 2012 President
Nursultan Nazarbayev announced the
Kazakhstan 2050 Strategy with the slogan "Strong Business, Strong State." This pragmatic strategy proposes sweeping socio-economic and political reforms to hoist Kazakhstan among the top 30 economies by 2050. In this document, Kazakhstan gives itself 15 years to evolve into a knowledge economy. New sectors are to be created during each five-year plan. The first of these, covering the years 2010–2014, focused on developing industrial capacity in car manufacturing, aircraft engineering and the production of locomotives, passenger and cargo railroad cars. During the second five-year plan to 2019, the goal is to develop export markets for these products. To enable Kazakhstan to enter the world market of geological exploration, the country intends to increase the efficiency of traditional extractive sectors such as oil and gas. It also intends to develop rare earth metals, given their importance for electronics, laser technology, communication and medical equipment. The second five-year plan coincides with the development of the
Business 2020 roadmap for small and medium-sized enterprises (SMEs), which makes provision for the allocation of grants to SMEs in the regions and for microcredit. The government and the National Chamber of Entrepreneurs also plan to develop an effective mechanism to help start-ups. == Demographics ==