- Kazakhstan: Republic's economy (general overview)
- Industry and Energy
- International trade
- Economic zoning of the country
- Ministry of Economy of the Republic of Kazakhstan
- Kazakhstan's economy: prospects for the near future
- Instead of conclusion
In the very center of Asia there is a large state called Kazakhstan. The economy of this country is characterized by an agro-industrial structure and a powerful sector of the mining industry. In terms of its overall potential, it is the largest in the Central Asian region.
What is the current market economy of Kazakhstan? And what are its prospects for the near future? Let's try to figure it out.
Kazakhstan: Republic's economy (general overview)
Kazakhstan is an agro-industrial country. In terms of GDP per capita ($ 11, 000), it is ranked 54th in the global ranking. The growth of Kazakhstan's economy is mainly due to mining, that is, the country is characterized by the raw material orientation of industry.
The official currency of Kazakhstan is tenge (since November 1993). The name comes from the Turkic "dengue" - so in the Middle Ages small Turkic coins of silver were called. By the way, it is this name that migrated to the Russian language - in the form of the well-known word "money".
The main branches of Kazakhstan's industry are mining, metallurgy (both black and non-ferrous), tractor construction, and the production of construction materials.
Russia, China, USA, Germany are the main trade partners of the Republic of Kazakhstan. The economy of this country is focused on the extraction and export of mineral raw materials. Kazakhstan mainly supplies coal, refined copper, ferroalloys, oil and gas to Kazakhstan.
Despite this, industrial production employs no more than 16% of the total population of the country. Another 24% work in agriculture and forestry, and the majority of people in Kazakhstan (about 60 percent) are involved in the so-called "tertiary" sector of the economy (services and information).
Industry and Energy
The country is very developed metallurgy, both black and non-ferrous. The national economy of Kazakhstan is very dependent on the stable operation of metallurgical enterprises. In terms of iron ore reserves, the country is in the top ten of the world.
Various types of rolled products are produced at the Arcelor Mittal Temirtau plant in Karaganda. Previously, this full-cycle plant was the flagship of the Soviet ferrous metallurgy. Kazakhstan is also the world's largest producer of refined copper.
The machine-building complex is also very developed in the country. Kazakhstan produces high-quality pressing machines, machine tools, batteries, and also x-ray equipment. The main engineering centers are the cities of Aktobe, Shymkent and Astana.
The power industry of the country is supplied by 40 power plants (of which 37 thermal power plants and 3 hydroelectric power plants). All thermal power plants operate on the actual mined coal.
Agriculture is no less important for the economy of Kazakhstan.
The leader in this sector of the economy is cereal production, namely, the cultivation of spring wheat. About 15-20 million tons of grain is produced annually in Kazakhstan. Also, significant areas of land (arable land) are occupied by crops of maize and oats. Sheep, horse and camel breeding is very well developed in the country.
The economy of the Republic of Kazakhstan is tied to the export of such resources and products as oil, petroleum products, iron ores, nonferrous metals and grain. At the same time, the country is actively importing cars, various devices and equipment, and food. The main article in the export structure of the state belongs to oil products (about 38%).
In foreign trade, about 60% of both exports and imports are in the CIS and Baltic states. It should be noted that Russia is the main trading partner of the country. Kazakhstan also actively develops and maintains trade relations with China, Germany, Ukraine, Turkey, the Czech Republic, the USA, Belarus, South Korea and other countries.
Economic zoning of the country
The Republic of Kazakhstan is conventionally divided into five economic regions, each of which has its own specialization. These are such as:
At the same time, the Western Economic Region specializes in oil and gas production, East and Central - in machine building, ferrous and nonferrous metallurgy, and North - in coal, iron ore, power generation, and construction materials.
Agriculture, fisheries and forestry are developed in the Southern Economic Region. Rice, wheat, cotton, vegetables, fruits and grapes are actively grown here; developed sheep and horse breeding. In the deserts of southern Kazakhstan, camels are also bred.
Ministry of Economy of the Republic of Kazakhstan
All processes in the country's economy are regulated and coordinated by the government. More specifically, this function falls on the shoulders of one of its organs. This is the Ministry of National Economy of the Republic of Kazakhstan. True, today this body has a completely different name: "Ministry of Economy and Budget Planning". The name that existed before was officially abolished in August 2014.
The Ministry, which is headed by Yerbolat Dossayev, coordinates the development of all areas of the state’s economic policy. The main mission of this body is to form an effective management system that would be able to fulfill the tasks set by the state. The ministry also controls the development of trade processes and the country's relations with foreign partners.
Kazakhstan's economy: prospects for the near future
The development of the economy of Kazakhstan in the near future runs the risk of serious difficulties. The cause of the crisis, oddly enough, can be events that occur far from the state borders of the republic, namely, the conflict in Ukraine.
Many experts predict that the war in the Donbass, as well as the situation with the Crimea, will affect the economy of Kazakhstan - a country that has close ties with Russia. Economic sanctions imposed by the West on the Russian Federation, one way or another, will affect Kazakhstan. True, with some inertial delay.
Experts in the field of national economy predict that Kazakhstan will feel the first consequences of all these processes already in mid-2015. Thus, revenues to the state budget of the country will significantly decrease, which will certainly affect the welfare of Kazakhstanis. Accession to the WTO can help the country cope with the crisis. This, according to experts, will contribute to lower prices for certain groups of goods.
Instead of conclusion
The most powerful - by industrial potential - country in Central Asia is Kazakhstan. The economy of this state is based mainly on the extraction and primary processing of minerals. And this fact can hardly be called positive for the long-term development of the country.
The economic and trade-financial policy of the state is led by the Ministry of Economy of Kazakhstan. One of the tasks of this government body, in particular, is the strategic planning of the development of the national economy system of the republic as a whole.