Republic of Kazakhstan: economy

Kazakhstan, whose economy is the most progressive among the countries of Central Asia, is ahead of all post-Soviet states in the number of gross domestic product, with the exception of the Russian Federation. Due to the rich deposits of natural resources (in particular, fuel), the republic can afford complete independent provision of resources.

kazakhstan economy

Kazakhstan overcame various difficulties after the collapse of the Soviet Union. But because of good diplomatic, and simply friendly relations with Russia and China, it was Kazakhstan that became the most developed. The economy of the state is based on such industries as mining, engineering and metallurgy.

History of development

After the collapse of the USSR, all the member states of the Union experienced a crisis, and Kazakhstan suffered the same fate. The country's economy has come under the influence of various political factors. The government at that time did not realize its independence, and instead of decisive actions, it was passively involved in the management of the republic. This attitude led to a decline in the economic sector.Indicators have decreased by more than half. Perhaps this was due to the fact that the Kazakh government did not particularly support the idea of ​​liquidating the Soviet Union, and therefore did not introduce any innovations.

But in the ninety-second year the leader of the nation, Nursultan Nazarbayev, determined the further path of development. He expressed his opinion in the work “Strategy of political and economic development of the country”. It describes a detailed plan for economic development up to 2005. With this treatise, Nazarbayev emphasized the intransigence of his intentions. He considered the policy of the pure nation to be the main step. That is, in his opinion, the Kazakhs (as a nation) should be central to their country.

Ministry of National Economy of the Republic of Kazakhstan

A year later, the Constitution of the Republic was approved. She secured the full and absolute authority of the president. Nazarbayev has reserved the right to make the most important decisions for the state.

But the economic jump did not happen. During political clashes prices fell, were below market. This contributed to the depreciation of the local currency. Inflation reached an incredible scale and reached two and a half thousand percent.

After solving all political issues, the economy of Kazakhstan entered a period of stagnation. It began to revive only from the new millennium. Small difficulties arose during the global crisis in 2008–2009. At the moment, the economy has stalled somewhat, but remains stable.

General information

The development of the economy of Kazakhstan, unlike the economy of the Russian Federation, does not depend so much on external factors. For this reason, it is stable, smoothly, but steadily growing.

At the purchasing power parity for every citizen of Kazakhstan there are twenty-three thousand dollars, and at face value - fourteen. This shows that, although in the state there are average indicators per capita, citizens can afford quite a lot. Each working resident of a country produces goods and services for twenty-six thousand dollars per year.

cities of kazakhstan

Debentures

Kazakhstan’s debt obligation to other countries is twelve percent (in terms of nominal gross domestic product). If you divide this amount into the entire population, then it turns out that every citizen owes a half thousand dollars. But it is worth considering that these are only government loans.

A feature of the economic policy of the republic is that debts are not divided into private and no. The state forgives loans to many large companies. That is, the obligation exists only formally. And if companies are debtors to international creditors, then in fact the debtor is the state itself. The statistics of the economy of Kazakhstan does not take into account these amounts anywhere, but they are quite significant.

Devaluation process

After the central bank of Kazakhstan decided to switch to a floating rate (tenge - dollar), the decrease in the value of the national currency relative to the world standard was almost sixty percent. This event has affected the increase in the number of export transactions. After the tenge maintenance costs decreased, the devaluation became equal to seventeen percent.

Kazakhstan industry

Characteristics of the industrial complex

A feature that distinguishes the Kazakh economy is the full provision of the state with natural resources. The country is rich in deposits of uranium, lead, zinc, non-ferrous metals. The country is engaged in oil and gas production.Kazakhstan's economy is largely built on the extractive industry. The whole world is a country known as a raw state. Powerful potential is provided by the development of such industries as fuel, metallurgy, mechanical engineering and petrochemistry. A quarter of Kazakhstan’s population works in the manufacturing sector. The main industry is the mining industry. Significant contributions are made by companies engaged in processing, as well as distribution of electricity, water and gas. The government sets such priorities in order to become more focused on the international buyer, in particular on the partner countries and strengthen its position in the world market.

ferrous metallurgy of Kazakhstan

Oil and gas industry

The industry of Kazakhstan received a big push after the scale of deposits of natural minerals became clear. First of all it is fuel resources. In terms of gas and oil production, the state ranks second after the Russian Federation among the countries of the former USSR. The main field development is carried out in the Caspian Sea region. The production volume allows Kazakhstan to be an energy independent state.Since this industry is leading and satisfies the domestic needs of the country, now the work of industry is aimed at exporting.

Coal, lignite and peat mining

In terms of production of this mineral, Kazakhstan is among the ten leaders in this industry. The advantage of the deposits on its territory is that they are located at a shallow depth, therefore, the organization of production and transportation does not cause certain difficulties. Coal mining is important for the energy sector, because three quarters of power plants operate precisely on this fuel.

Metallurgical industry

Ferrous metallurgy of Kazakhstan, as well as non-ferrous, is currently working on the world market. This industry is well developed thanks to deposits that are rich in copper, chromium, manganese. Contribution to the economy of the country metallurgy contributes 12%. It provides an inflow of currency through export operations.

power industry of Kazakhstan

Metalworking and mechanical engineering

In the nineties of the last century, metal working and mechanical engineering occupied key positions. And the leader was the manufacturing industry.But, starting from the two thousandth years, the Ministry of National Economy of the Republic of Kazakhstan decided to strengthen machine-building. On such an action, the government prompted the emergence of automobile companies. In this regard, there was a need to operate previously exported goods for their own purposes.

Energy production

The activity of the entire industrial complex of the state is built on the activities of this industry. Without exception, all cities of Kazakhstan are provided with their own energy without purchases from neighboring countries. Among the world's energy producers, the country has established itself very well and is one of the thirty leaders in this industry. According to this indicator, it ranks third among the countries of the post-Soviet space. All power engineering of Kazakhstan is generated in Pavlodar and Karaganda regions. The largest producers of heat and electricity include:

  • EEC JSC.
  • AES Ekibastuz LLP.
  • JSC "Station Ekibastuz GRES-2".
  • Kazakhmys Corporation JSC.
  • Aluminum of Kazakhstan JSC.
  • Mittal Steel Temirtau JSC.
  • LLP "Karaganda Zhylu".
  • Kazakhmys Corporation JSC.

Petrochemical industry

Petrochemistry also distinguishes Kazakhstan. The economy actively finances this industry. A large increase in petrochemical enterprises occurred after an increase in the production of fuel and lubricants. But the products produced at the enterprises do not meet international quality standards and cannot compete in the world market yet.

Kazakhstan economy statistics

Trade relations

The Ministry of National Economy of the Republic of Kazakhstan is mainly engaged in active negotiations with the countries of the former Soviet Union. Special relations arose after the creation of a common economic space with the Russian Federation and the Republic of Belarus.

But more and more often in the government there are calls to search for new markets. The country is reorienting to Germany, Turkey, Switzerland, the Czech Republic, the United States, South Korea and China. Since 2005, the number of import-export operations with these states has increased several times. But still, the key partner for Kazakhstan is Russia. Trade with this state is about sixty percent.

Financial system

During its independence, the country has shown a significant economic recovery. Cities of Kazakhstan are provided with everything necessary, moreover, due to their own resources.At this stage, the state is able to make deals not only with the CIS countries, but also with powerful superpowers. The formation of a national structure contributed to the formation of a political system. The stabilization reserve fund, in case of unforeseen difficulties, provoked the active opening of banking sector objects. But since the power structures tightly control their activities, there are only forty financial institutions in Kazakhstan.

In recent years, the greatest losses provoked the global financial crisis. But the country suffered it with minimal losses, Kazakhstan does not need subsidies. The problem of Kazakhstan’s economy is dependent on Russia, more precisely, on its capital. Most of the debt is to the Russian Federation.

In general, the financial situation of the republic is stable, but there are some difficulties. In recent years, the pace of production of metallurgy products has slowed, as the demand from buyers has fallen. In the oil and gas industry, competition has been tightened due to the lucrative offers of Saudi Arabia and the United Arab Emirates. Residents of the state suffer from credit conditions, constantly increasing pensions and wages.The main problem remains and the fall of the national currency. But the government seeks to stabilize the economic situation in the country by attracting investment. A good resource base, population and political system maintain a stable state of the economy in Kazakhstan.

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