Kazakhstan
Kazakhstan is the 9th largest country in the world by area, extending from the Caspian Sea to China. Although it has a relatively modest population (18.2m), it is by far the richest country in Central Asia with a GDP of over US$165bn (2020) and a GDP per capital of US$8,733 (2020). The decline in commodity prices and the devaluation of the currency since 2014 has led to a decline of 30% in US$ denominated GDP since 2013, though it has recovered from its 2016 trough. The country is rich in a wide variety of mineral resources, and is producing 2% of global oil production, even before the supergiant Kashagan field came on stream. Oil & gas accounted for 58% of exports in 2020, down from 76% in 2013. This mineral wealth has been funding a national wealth fund, has enabled the government to significantly increase spending on infrastructure, health and education, and also has led to growing foreign exchange reserves. Agriculture is also a significant activity, and the country is a large exporter of wheat. Exports are mainly destined to EU countries (39% in 2020), followed by China (20%), Russia (11%) the Uzbekistan (4%) and Turkey (4%). The fall of oil prices in 2020 affected the mix and level by country. Imports are mainly from Russia (38%), followed by the EU (18%), China (17%), Korea (10%) The investment climate, as well as the natural resource wealth has let to significant foreign direct investment since 1993. In the 2005-2019 period alone, there have been net inflows of US$129bn, of which 55% in the mineral and oil & gas industries. The current (2020) net investment position of foreign investors is US$151bn, of which 80% in the mineral and oil & gas industries. |
Data sources: IMF World Economic Outlook - April 2020, National Bank of Kazakhstan, Kazakhstan Statistical Agency.
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