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Economy of Kazakhstan



Buoyed by high world crude oil prices, GDP growth figures were comprised between 8.9% and 13.5% from 2000 to 2007 before decreasing to 1-3% in 2008 and 2009, and then rising again from 2010. Other major exports of Kazakhstan include wheat, textiles, and livestock. Kazakhstan predicted that it would become a leading exporter of uranium by 2010, which has indeed come true.

The inflation figures are high: 2005 – 7.6%, 2006 – 8.6%, 2007 – 18.8%, 2008 – 9.5%, 2009 – 6.2%.

Since 2002, Kazakhstan has sought to manage strong inflows of foreign currency without sparking inflation. Inflation has not been under strict control, however, registering 6.6% in 2002, 6.8% in 2003, and 6.4% in 2004.

In 2000, Kazakhstan became the first former Soviet republic to repay all of its debt to the International Monetary Fund (IMF), 7 years ahead of schedule. In March 2002, the U.S. Department of Commerce granted Kazakhstan market economy status under U.S. 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. As of 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 noticeable reduction in the ratio of debt to GDP. The ratio of total governmental debt to GDP in 2000 was 21.7%; in 2001, it was 17.5%, and in 2002, it was 15.4%.

Economic growth, combined with earlier tax and financial sector reforms, has dramatically improved government finance from the 1999 budget deficit level of 3.5% of GDP to a deficit of 1.2% of GDP in 2003. Government revenues grew from 19.8% of GDP in 1999 to 22.6% of GDP in
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