Economy of Kazakhstan

ECONOMY

Kazakhstan is important to world energy markets because it has significant oil and natural gas reserves. Within the next decade Kazakhstan would become one of the world’s largest oil producers and exporters. But Kazakhstan’s strategic aspiration is to become a modern, diversified economy with a high value added and high-tech component, well integrated into the global economy. Energy sector is viewed as a good basis to achieve this goal.

The future of the Kazakhstan economy is closely connected with further integration into international economic relations, efficient disposal of unique reserves of hydrocarbon and mineral resources, export of industrial and agricultural products, optimum employment of country’s transit potential and also with availability of highly qualified human resources in different spheres.

During the Soviet period Kazakhstan was an agrarian country and raw materials supplier of the former Soviet economy, where the military industry played the dominant role. The main economic content of 19 years of independence has become transition from a centrally planned economy to a market economy. During years of independence Kazakhstan has made considerable progress in implementing complex political, economic and social reforms to establish a politically stable market economy.

The first 10 years of Kazakhstan’s independence were characterized by numerous economic, social and environmental challenges. Due to the destabilizing force of disintegration of the Soviet Union real GDP by 1995 dropped to 61,4% of its 1990 level. This economic deterioration exceeded the losses experienced during the Great Depression of the 1930s. The wide-ranging inflation observed in the early 1990s peaked at annual rate of up to 3000% in mid-nineties.

Nevertheless, since 1992 Kazakhstan has actively pursued a program of economic reforms designed to establish a free market economy through privatization of state enterprises and economic decentralization. Successful implementation of reforms resulted in general recognition of Kazakhstan in 2001 as the country with the market economy (first in CIS countries). Western countries have highly appreciated Kazakhstan’s reforms in the areas of currency convertibility, inflation targeting, foreign investment policy, demonopolization and reallocation of resources.

Being the most successful reformer in the CIS and based on its strong macroeconomic performance and financial health, Kazakhstan became the first former Soviet republic to repay all of its debt to the International Monetary Fund (IMF) in 2000 (7 years ahead of schedule). This contributed to receiving an investment-grade credit rating from major international credit rating agencies. Today Kazakhstan is rated as follows: BBB-/Stable from Standard&Poor's, Baa2/Stable from Moody’s Investors Service and BBB-/Stable from Fitch Ratings. Global financial crisis which started at the end of 2007 had multiple implications on Kazakhstan’s economy and exposed underlying vulnerabilities. With lower oil and commodity prices and adverse conditions in international capital markets new challenges for emerging economy have surfaced — declined public revenue, liquidity shortages, national currency’s stability, dependence of financial institutions on external funding, negatively affected investors' confidence and capital outflows.

In these circumstances the Government quickly stepped in to regulate and stabilize the situation. A set of policies has been introduced under the Anti-Crisis Program to help mitigate economic vulnerabilities and establish a basis for the resumption of strong growth. As a part of the policy Kazakhstan has devalued its currency and vastly expanded its role in the financial sector by entering into the capital of the four largest banks. As of April 2, 2010, Kazakhstan is in the 5th group of risks according to the country risk classification by Organization for Economic Cooperation and Development, OECD. In the 5th group, except Kazakhstan, there are also Azerbaijan, Croatia, Macedonia, Paraguay etc.

Holding significant resources of oil and gas, coal and uranium, Kazakhstan is an important energy player in the world. In the 1st quarter 2010 Kazakhstan has produced 19.7 mln. metric tons of oil and gas-condensates (+8.8% in comparison with the 1st quarter 2009), 27.4 mln. metric tons of coal (+12.4%) and 9.7 bln. cubic meters of natural gas (+11.5%).

However, bearing in mind recent fluctuations in the world commodities market, the Government targets its energy policy on further diversification of energy resources, efficient energy use, stimulation of R&D in renewables and raising a profile of environment component. Today investments in natural resources constitute 72% of all investments in economy. 73% of investments in natural resources come from overseas and the rest is generated by the national economy.

Being an integral part of energy sector, a system of pipelines and infrastructure are key elements of a viable energy policy. Kazakhstan’s counterparts (United States, EU, China and Russia) have identified their strong interest to cooperate with Kazakhstan in this area, particularly on trans-continental oil and gas transportation issues. Kazakhstan has made it clear that this fully meets its own vision for the development of multiple energy transportation routes from and through Kazakhstan. In January-February 2010 volumes of oil transportation through pipelines has increased by 24.1% (in comparison with January-February 2009) and total turnover through pipelines has increased by 27.8%. Commercial viability, technical and environmental safety and financial soundness are the guiding principles for Kazakhstan’s strategy in this crucial area.

economy kazakhstan financial tax

KAZAKHSTAN — ECONOMIC OVERVIEW

The perspective of the Kazakhstan economy is closely connected with further integration into international economic relations, utilisation of unique reserves of energy and mineral resources, vast possibilities to export industrial and agricultural products, optimum employment of country’s transit potential and also with availability of highly qualified specialists in different spheres.

During the Soviet period Kazakhstan was an agrarian, raw materials supplier of the former Soviet economy, where the military industry played the major role. The main economic content of 16 years of independence has become transition from the central command planning to a market system. During these years, Kazakhstan has made considerable progress in implementing complex political, economic and social reforms to establish a democratic state with a market economy.

While the country has not experienced political disturbances during the transition period, it has faced numerous economic, social and environmental challenges.

The first few years of Kazakhstan’s independence were characterized by an economic decline (mostly due to the destabilizing force of disintegration of the Soviet Union): by 1995 real GDP dropped to 61,4% of its 1990 level. This economic deterioration exceeded the losses experienced during the Great Depression of the 1930s.

The wide-ranging inflation observed in the early 1990s peaked at annual rate of up to 3000% in mid-nineties.

Since 1992, Kazakhstan has actively pursued a program of economic reform designed to establish a free market economy through privatization of state enterprises and deregulation and today is generally considered to be more advanced in this respect than most other countries of the CIS.

Kazakhstan remains one of the most successful reformers in the CIS, and it has the strongest banking system in Central Asia and CIS.

The main goals of current structural policy are diversification and the strengthening of the non-oil sector. A number of development agencies and research centers (Development Institutions) have been established and the Government is looking at establishing techno and science parks to support the diversification of higher-value added industries. But there are certain obstacles inherited from the past to quickly achieve this.

The EU and USA have recognized Kazakhstan (first in CIS) as a country with market economy in 2001 and 2002 respectively. Kazakhstan has become the first country in the CIS to reach investment grade status. In January 2005 the Organization for Economic Cooperation and Development (OECD) has upgraded Kazakhstan’s country export risks rating, moving it from the 5th to the 4th group of risks.

Kazakhstan possessing sizable amounts of oil and gas, coal, uranium is an important energy player in the world. However, having these abundant resources, the Government and the country’s energy sector keep an attentive eye on global energy trends. Optimal energy mix, energy use efficient, significant environment component of energy policy, research and development of renewables are all on the country’s energy policy agenda. In 2006 Kazakhstan has produced its first wheat-based bioethanol and this private sector programme will expand further.

Energy transportation and infrastructure are key elements of a viable energy policy. EU and its Energy Commissioner have identified last year their strong interest to cooperate with Kazakhstan in this area, particularly on trans-continental gas and oil transportation issues. Kazakhstan has made it clear that this fully meets its own vision for the development of multiple energy transportation routes from and through Kazakhstan.

Commercial viability, technical and environmental safety and financial soundness are the guiding principles for Kazakhstan’s strategy in this crucial area.

The main economic priority for Kazakhstan is to avoid overdependence on its oil and gas and minerals sector, but to use these natural assets to build a modern, diversified, highly-technological, flexible and competitive economy with a high value-added component. This is the central goal of the National Strategy until 2030 adopted in 1998 and the State Industrialization and Innovation Programme until 2015 launched in 2003.

In 2006 Kazakhstan has additionally announced a major drive for the Strategy to enter the 50 most completive nations in the world in ten years time.

In 2007 a State Program of «30 Corporate Leaders of Kazakhstan» aimed at diversification of the economy has been launched. The goal of the Program is to modernize the economy and support Kazakh companies willing to enter international markets through offering competitive products.

Diversification of the economy, introduction of international technical, financial, business standards, accession to the WTO, promotion of corporate governance, greater transparency and accountability, education and a concerted administrative reform have been identified as the key drivers to implement the above strategies (for more, please see p. 17, President Nazarbayev’s 2008 State-of-the-Nation Address).

In 2006 the Government has drastically increased the budget of a state-run scholarship programme «Bolashak» («Future»). If to date only about 800 Kazakh students could enjoy the benefits of «Bolashak» scholarship since its inception in 1994, starting from 2006 the Government fully funds 3000 Kazakh students annually to study in the world’s best universities. As of February 2008 intake of «Bolashak» students in the US reached about a 1000 young Kazakhstanis.

Aiming to cut bureaucracy the Government is widely introducing the «e-government» in all major sectors. This measure coupled with other result-oriented administrative reform steps is viewed, among other things, as an important tool in the fight against red-tape and corruption.

In order to further improve the country’s competitive edge and regional role through enforcing the principles of efficient corporate governance and management, greater transparency and accountability as well by boosting its financial markets the Government has taken major steps in early 2006, namely it established the «Samruk» State holding company, «Kazyna» Fund for sustainable development and initiated the establishment of the Regional Financial Centre in Almaty (RFCA) (for more details, please see pp. 88, 92, 98 respectively).

Over the last three years (2005;2008) 21 Kazakhstan companies have been listed at the London Stock Exchange (10 on the main market, and 11 on AIM, market for growth companies). This has proved de-facto Kazakhstan’s leadership in the former Soviet Union in implementing Western instruments, managerial skills and business standards in the country’s economy.

Starting from 2005 Kazakhstan has been practically implementing the UK’s Extractive Industries Transparency Initiative with the aim to deliver a clear signal to international investors community and financial institutions that the Government of Kazakhstan commits itself to greater transparency to further improve investment climate, strengthen accountability and good governance, as well as promote greater economic and political stability throughout the country which will be based on the principles of decentralization, industry specialization, free market competition and transparency.

Kazakhstan has officially announced its aspiration to become a trilingual nation to help meeting its ambitious goals. These will be Kazakh as the state language, Russian as the language of interethnic communication, and English as the language of successful integration into the global economy and community.

Social and political stability, along with tremendous natural resources, make Kazakhstan one of the most attractive destinations for capital investments among the republics of the former Soviet Union

Economic growth and development.

Natural resources dominate export sector while strong imports ofcapital goods reflect ongoing economic diversification and stronginvestment

New tax code aims to support economic diversification by reallocating resources into the non-energy sector

Measures planned in the New Tax Code

· Accommodation of all changes/amendments/interpretations to the Tax Code made during the last 5 years

· Adjustment of the Tax Code for the application of IAS

· Revocation of advance payments of corporate income tax for smalland medium size enterprises

· Extension of loss deferral period to 10 years

· Stage-by-stage introduction of traditional VAT payment scheme (introduce reimbursement of VAT receivables from the budget)

· Introduction of common social tax instead of the current regressive scale

· Reduction of VAT to 12% from 13%

Corporate Income Tax ReformCorporate Income Tax Reform

· Optimization of investment tax preferences

· Revocation of advance payments of corporate income tax for small and medium size enterprises

· Extension of loss deferral period from 3 to 10 years?? Reduction of CIT from 30% to 15% over the period of three years

· Allow processing industries to file for tax deductions for construction expenditures and cost of fixed assets within a three year period

Taxation of Mineral Extractive Sector

· Replace the old royalty-based tax system with the new Mineral Extractive Tax that directs flow of the new tax by energy companies to the National Fund and by non-energy sector to the budget

· Change the calculation of rent and excess profit taxes, including change of base price levels from selling price to the world price levels

· Starting from January 2009 the government will stop issuing production sharing agreements (existing agreements will stay in force)

· Increase tax burden of the energy sector from 49% to 62% (at base price 72.7 $/b)

· Oil export duty is abolished from 2009

Republic of Kazakhstan—2010 Article IV Consultation Concluding Statement of the IMF Mission

June 8, 2010

The following statement reflects the views of an International Monetary Fund (IMF) mission, led by Ana Lucia Coronel, that visited Astana and Almaty during May 26-June 8, 2010 to conduct discussions for the 2010 Article IV consultation. The mission reviewed recent economic and financial sector developments and discussed ongoing and envisaged policy responses and economic prospects. The mission met with government, parliament and central bank officials, and representatives of the international, banking and business communities. The mission would like to thank the authorities for the open discussions and fruitful collaboration.

1. Global economic activity has begun to recover, but the pattern of growth is uneven and financial conditions remain fragile. Overall, the rebound in global growth and the improvement in financial conditions have not been enough to compensate for the ground lost during the recession. Macroeconomic policies in most economies are expected to remain supportive of growth and employment, although in some faster growing emerging economies, policies must balance against the risks from rising capital inflows. Advanced countries are faced with the challenge of fiscal consolidation to address rising levels of public debt and the consequent risks to global financial stability. Bank capital constraints, private sector deleveraging, and ongoing regulatory reform will likely continue to limit wide-ranging access to credit, highlighting global financial uncertainties and downside risks to global growth.

2. Against this background, Kazakhstan’s economy is expected to recover. Growth is aided by stronger trade and continued policy stimuli, but remains constrained by banking sector difficulties. Public sector support and externally driven activity in the mining and manufacturing sectors contributed to a strong economic rebound in the last few months of 2009, but credit expansion is subdued despite ample bank liquidity, and activity in key sectors, such as construction and real estate, remains sluggish. IMF staff projects the economy to expand by about 4 percent this year, reflecting developments through the first quarter of 2010. However, weak non-oil activity and continued deleveraging of private sector balance sheets will likely limit the growth of consumer demand. The government’s plans to improve productivity and advance economic diversification could support an increase in growth towards its projected potential of about 6 percent over the next 5 years, but this will require a healthy, adequately capitalized, and well regulated financial system.

3. Despite significant public sector support to banks, the financial sector remains under stress and there is a need to fully address the underlying vulnerabilities. The banking system has been stabilized with large scale capital and liquidity support. The successful external debt restructurings of Alliance Bank and BTA have been key in stabilizing the financial positions of these banks, which are now ready to employ new business models. Nonetheless, the ongoing sharp increase in nonperforming loans (NPLs) across banks and economic sectors reflects banks' excessive exposure to currency induced credit risk stemming from the combination of a low and dollarized deposit base, the reliance on foreign funding, and risky lending practices. Therefore, actions should be taken to:

* Swiftly design and implement a comprehensive and transparent resolution of NPLs. Given the ongoing deterioration in asset quality, the associated effects on provisioning and capital, and the increasing prospect for higher minimum capital requirements at the international level, it is essential that banks, in conjunction with the Kazakhstani authorities, take more forceful and broad action to reduce NPLs. This would help to effectively rehabilitate the financial system and support a level of credit growth consistent with the necessary deleveraging of the corporate sector. There is no guarantee that higher GDP growth will automatically solve the banks' bad debt problems, and the maintenance of a high stock of NPLs could act as a significant drag on growth prospects. While the aggregate provisioning level of the banking system is currently high, it has been declining. A full diagnostic assessment of systemically important banks would help to establish whether there is scope for remedial measures at the bank level, or whether there is a need for a more centralized approach to deal with bad assets. Such assessment should also determine any needs for additional capital and a contingent plan for recapitalization.

* Address the vulnerabilities that led to the deterioration of the quality of bank credit portfolios. Given the challenges ahead, the government should continue to strengthen the Financial Supervision Agency’s authority, independence, legal protection, and resources to credibly address weaknesses and risks that became apparent during the crisis. This includes continued action to curb overseas borrowing (especially short term) by banks, raise provisioning requirements on foreign currency loans to insufficiently hedged borrowers, strengthen banks' governance frameworks, encourage appropriate asset valuation methods, transparency and accountability, and forego regulatory forbearance, especially regarding the banks under state control. The unwinding of public support to the financial sector will need to be carefully calibrated to minimize market impacts. Continued public sector support to promote lending to specific sectors such as SMEs should be well focused to avoid the emergence of future bad credits.

4. Monetary policy will need to find the balance between keeping inflation under control and supporting the financial sector and real economy. In the presence of higher growth, inflationary pressures need to be continuously monitored and real interest rates kept positive to support depositor confidence and prevent inflation from surpassing the projected 6−8 percent range. Once the banking sector difficulties are addressed, the economy would benefit from greater market determination of the exchange rate and lower central bank intervention. This would enhance the effectiveness of monetary policy and the economy’s response to external shocks, such as commodity price movements and exchange rate developments of trading partners. It would also promote better management of exchange rate risk and thus support dedollarization against an improved macroeconomic and financial sector backdrop. Efforts to deepen domestic financial markets—including liquid futures and forward markets in foreign exchange—and promote risk diversification are needed to encourage the demand for holding and transacting in tenge, and ensure that private domestic savings become the primary source of financing of productive activities.

5. The authorities should withdraw fiscal stimulus gradually, while raising the efficiency of public spending. With large international reserves and low debt, the public sector is well positioned for continued support of the economic recovery, albeit at a lower level than in 2008 and 2009. However, the quality of public projects should be consistent with growth objectives, and hard-to-reverse outlays—including subsidies and excessive public sector wage increases—should be avoided. The economy will also benefit from improved tax administration to reduce tax evasion. Once the most pressing difficulties in the banking and real sectors are resolved, the fiscal position should be brought back to a conservative path with a phasing out of the contingent liabilities of the public sector. Importantly, the assessment of fiscal sustainability would benefit from an aggregate approach that comprises all fiscal transactions (including those that are off-budget) within a medium-term framework. This framework should reflect judgments on the optimal combination of savings and use of oil and commodity revenues—perhaps supported by an appropriately defined fiscal rule—to allow for countercyclical fiscal policy, and encourage economic diversification.

6. On the road to sustainable economic growth, Kazakhstan needs to address a dual challenge in the period ahead: addressing the bank weaknesses while reinvigorating economic activity. Restoring banks' balance sheets and resolving banks' underlying vulnerabilities is the immediate priority. Public sector support is still critical in the near term, but a strategy to gradually unwind this support—including the phasing out of the contingent liabilities—is needed. These efforts should be supplemented by effective bank supervision and careful medium-term budget planning. The need for removal of public entity deposits from banks, divestment of equity stakes in the system, and withdrawal of the stimulus-oriented budget spending has to be balanced against the need to sustain economic recovery. In parallel, a greater role for the market in the determination of the exchange rate and further development of domestic financial markets are expected to promote dedollarization and support monetary management. These policies and the authorities' efforts to enhance the business environment, sustain improvements in education, health and infrastructure are expected to boost competitiveness, encourage economic diversification, and strengthen the financial system’s resilience to volatility in commodity prices or shifts in market risk appetite.

Kazakhstan Economy Profile 2012

Economy

Kazakhstan, geographically the largest of the former Soviet republics, excluding Russia, possesses enormous fossil fuel reserves and plentiful supplies of other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain. In 2002 Kazakhstan became the first country in the former Soviet Union to receive an investment-grade credit rating, and from 2000 through 2007, Kazakhstan’s economy grew more than 9% per year. Extractive industries, particularly hydrocarbons and mining, have been the engines of this growth. However, geographic limitations and decaying infrastructure present serious obstacles. Landlocked, with restricted access to the high seas, Kazakhstan relies on its neighbors to export its products, especially oil and gas. Although its Caspian Sea ports and rail lines carrying oil have been upgraded, civil aviation has been neglected. Telecoms are improving, but require considerable investment, as does the information technology base. Supply and distribution of electricity can be erratic. At the end of 2007, global financial markets froze up and the loss of capital inflows to Kazakhstani banks caused a credit crunch. The subsequent and sharp fall of oil and commodity prices in 2008 aggravated the economic situation, and Kazakhstan plunged into recession. While the global financial crisis took a significant toll on Kazakhstan’s economy, it has rebounded well. In response to the crisis, Kazakhstan’s government devalued the tenge (Kazakhstan's currency) to stabilize market pressures and injected $ 19 billion in economic stimulus. Rising commodity prices have helped revive Kazakhstan’s economy, which registered 7% growth in 2010. Barring a dramatic decline in oil prices, strong growth is expected to continue in 2011. Despite solid macroeconomic indicators, the government realizes that its economy suffers from an overreliance on oil and extractive industries, the so-called «Dutch disease.» In response, Kazakhstan has embarked on an ambitious diversification program, aimed at developing targeted sectors like transport, pharmaceuticals, telecommunications, petrochemicals and food processing.

GDP (purchasing power parity)

$ 196.4 billion (2010 est.)

$ 183.6 billion (2009 est.)

$ 181.4 billion (2008 est.)

note: data are in 2010 US dollars

GDP (official exchange rate)

$ 138.4 billion (2010 est.)

GDP — real growth rate

7% (2010 est.)

1.2% (2009 est.)

3.2% (2008 est.)

GDP — per capita (PPP)

$ 12,700 (2010 est.)

$ 11,900 (2009 est.)

$ 11,800 (2008 est.)

note: data are in 2010 US dollars

GDP — composition by sector

agriculture: 5.4%

industry: 42.8%

services: 51.8% (2010 est.)

Population below poverty line

8.2% (2009)

Labor force

8.611 million (2010 est.)

Labor force — by occupation

agriculture: 28.2%

industry: 18.2%

services: 53.6% (2010)

Unemployment rate

5.8% (2010 est.)

6.6% (2009 est.)

Unemployment, youth ages 15−24

total: 6.7%

male: 6.8%

female: 8.2% (2008)

Household income or consumption by percentage share

lowest 10%: 3.8%

highest 10%: 25.2% (2007 est.)

Distribution of family income — Gini index

26.7 (2009)

31.5 (2003)

Investment (gross fixed)

25.2% of GDP (2010 est.)

Budget

revenues: $ 29.18 billion

expenditures: $ 32.77 billion (2010 est.)

Taxes and other revenues

21.1% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-2.6% of GDP (2010 est.)

Public debt

15.5% of GDP (2010 est.)

13.5% of GDP (2009 est.)

Inflation rate (consumer prices)

7.1% (2010 est.)

7.3% (2009 est.)

Central bank discount rate

4.25% (31 December 2010 est.)

7% (31 December 2009 est.)

Commercial bank prime lending rate

8.161% (31 December 2010 est.)

6.757% (31 December 2009 est.)

Stock of narrow money

$ 21.3 billion (31 December 2010 est.)

$ 16.58 billion (31 December 2009 est.)

Stock of money

$ 16.12 billion (31 December 2008)

$ 12.74 billion (31 December 2007)

Stock of quasi money

$ 35.76 billion (31 December 2008)

$ 25.75 billion (31 December 2007)

Stock of broad money

$ 66.23 billion (31 December 2010 est.)

$ 52.58 billion (31 December 2009 est.)

Stock of domestic credit

$ 67.2 billion (31 December 2010 est.)

$ 62.65 billion (31 December 2009 est.)

Market value of publicly traded shares

$ 60.74 billion (31 December 2010)

$ 57.66 billion (31 December 2009)

$ 31.08 billion (31 December 2008)

Agriculture — products

grain (mostly spring wheat), cotton; livestock

Industries

oil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur, uranium, iron and steel; tractors and other agricultural machinery, electric motors, construction materials

Industrial production growth rate

10% (2010 est.)

Electricity — production

75.61 billion kWh (2009 est.)

Electricity — production by source

fossil fuel: 84.3%

hydro: 15.7%

nuclear: 0%

other: 0% (2001)

Electricity — consumption

77.9 billion kWh (2009 est.)

Electricity — exports

2.483 billion kWh (2008 est.)

Electricity — imports

1.94 billion kWh (2009 est.)

Oil — production

1.61 million bbl/day (2010 est.)

Oil — consumption

249,000 bbl/day (2010 est.)

Oil — exports

1.501 million bbl/day (2009 est.)

Oil — imports

172,500 bbl/day (2009 est.)

Oil — proved reserves

30 billion bbl (1 January 2011 est.)

Natural gas — production

35.61 billion cu m (2009 est.)

Natural gas — consumption

8.572 billion cu m (2009 est.)

Natural gas — exports

9.9 billion cu m (2009 est.)

Natural gas — imports

6.1 billion cu m (2009 est.)

Natural gas — proved reserves

2.407 trillion cu m (1 January 2011 est.)

Current Account Balance

$ 4.319 billion (2010 est.)

-$ 4.221 billion (2009 est.)

Exports

$ 60.84 billion (2010 est.)

$ 43.93 billion (2009 est.)

Exports — commodities

oil and oil products 59%, ferrous metals 19%, chemicals 5%, machinery 3%, grain, wool, meat, coal

Exports — partners

China 20.2%, Germany 9.1%, Russia 8.5%, France 7.1%, Turkey 4.5%, Canada 4.5%, Italy 4.1% (2010)

Imports

$ 31.96 billion (2010 est.)

$ 28.96 billion (2009 est.)

Imports — commodities

machinery and equipment, metal products, foodstuffs

Imports — partners

Russia 34.3%, China 27.7%, Germany 5.2%, Ukraine 4% (2010)

Reserves of foreign exchange and gold

$ 28.27 billion (31 December 2010 est.)

$ 23.22 billion (31 December 2009 est.)

Debt — external

$ 124.1 billion (30 June 2011 est.)

$ 95.91 billion (31 December 2010 est.)

Stock of direct foreign investment — at home

$ 79.13 billion (31 December 2010 est.)

$ 69.17 billion (31 December 2009 est.)

Stock of direct foreign investment — abroad

$ 13.76 billion (31 December 2010 est.)

$ 5.958 billion (31 December 2009 est.)

Exchange rates

tenge (KZT) per US dollar ;

147.28 (2010)

147.5 (2009)

120.25 (2008)

122.55 (2007)

126.09 (2006)