Ethnic Kazakhs, a mix of Turkic and Mongol nomadic tribes who migrated to the region by the 13th century, were rarely united as a single nation. The area was conquered by Russia in the 18th century, and Kazakhstan became a Soviet Republic in 1936. Soviet policies reduced the number of ethnic Kazakhs in the 1930s and enabled non-ethnic Kazakhs to outnumber natives. During the 1950s and 1960s agricultural "Virgin Lands" program, Soviet citizens were encouraged to help cultivate Kazakhstan's northern pastures. This influx of immigrants (mostly Russians, but also some other deported nationalities) further skewed the ethnic mixture. Non-Muslim ethnic minorities departed Kazakhstan in large numbers from the mid-1990s through the mid-2000s and a national program has repatriated about a million ethnic Kazakhs back to Kazakhstan. These trends have allowed Kazakhs to become the titular majority again. This dramatic demographic shift has also undermined the previous religious diversity and made the country more than 70% Muslim.
Kazakhstan's economy is larger than those of all the other Central Asian states largely due to the country's vast natural resources. Current issues include: developing a cohesive national identity, expanding the development of the country's vast energy resources and exporting them to world markets, diversifying the economy, enhancing Kazakhstan's economic competitiveness, and strengthening relations with neighboring states and foreign powers. Astana successfully hosted an internationally recognized exposition in 2017. The three-month Expo 2017, themed Future Energy, was the first such exhibition by a former Soviet country.
Kazakhstan, geographically the largest of the former Soviet republics, excluding Russia, possesses substantial fossil fuel reserves and other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain. The government realizes that its economy suffers from an overreliance on oil and extractive industries and has made initial attempts to diversify its economy by targeting sectors like transport, pharmaceuticals, telecommunications, petrochemicals and food processing for greater development and investment.
Kazakhstan's vast hydrocarbon and mineral reserves form the backbone of its economy. Chevron-led Tengizchevroil announced a $36.8 billion expansion of Kazakhstan’s premiere Tengiz oil field in July 2016. Meanwhile, the super-giant Kashagan field finally launched production in October 2016 after years of delay and an estimated $55 billion in development costs.
Kazakhstan is landlocked and depends on Russia to export its oil to Europe. It also exports oil directly to China. In 2010, Kazakhstan joined Russia and Belarus to establish a Customs Union in an effort to boost foreign investment and improve trade. The Customs Union evolved into a Single Economic Space in 2012 and the Eurasian Economic Union (EAEU) in January 2015. In part due to weak commodity prices, Kazakhstan’s exports to EAEU countries declined 23.5% in 2016. Imports from EAEU countries to Kazakhstan declined 13.7%.
The economic downturn of its EAEU partner, Russia, and the decline in global commodity prices from 2014 to 2015 contributed to an economic slowdown in Kazakhstan, which continues to experience its slowest economic growth since the financial crises of 2008-09. In 2014, Kazakhstan devalued its currency, the tenge, and announced a stimulus package to cope with its economic challenges. In the face of further decline in the ruble, oil prices, and the regional economy, Kazakhstan announced in 2015 it would replace its currency band with a floating exchange rate, leading to a sharp fall in the value of the tenge. Since reaching a low of 391 to the dollar in January 2016, the tenge has modestly appreciated, helped by somewhat higher oil prices.
Despite some positive institutional and legislative changes in the last several years, investors remain concerned about corruption, bureaucracy, and arbitrary law enforcement, especially at the regional and municipal levels. An additional concern is the condition of the country’s banking sector, which suffers from low liquidity, poor asset quality, and a lack of transparency. Investors also question the potentially negative effects on the economy of a contested presidential succession as Kazakhstan’s first president, Nursultan NAZARBAYEV, who turned 77 in 2017, has not announced whether he will seek reelection in 2019.
|Gross domestic product, constant prices|
|Gross domestic product, current prices|
U.S. dollars (Billions)
|Gross domestic product per capita, current prices|
U.S. dollars (Units)
|Inflation, average consumer prices|
|Volume of imports of goods and services|
|Volume of exports of goods and services|
Percent of total labor force
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Percent of GDP
Source: IMF Statistics - Kazakhstan
Non double taxation agreement
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Embassy of the Grand Duchy of Luxembourg in Kazakhstan
Ambassador with residence in Moscow: Mr Georges FABER
Khrouchtchevsky Pereoulok 3
Tel: +7 495 786 66 63
Fax: +7 495 786 66 69
Honorary Consul with jurisdiction over the oblast of East Kazakhstan, the Almaty oblast, the oblast of Jambul, the oblast of South Kazakhstan, the oblast of Kyzlorda and the oblast of Karadanda:
Mr Orifijan SHADIEV
76, Abai Avenue
050057 Almaty - Kazakhstan
Tel: +7 727 375 98 30
Fax: +7 727 266 24 47
Honorary Consul with jurisdiction over the oblast of North Kazakhstan, the Pavlodar oblast, the oblast of Kostanay, the oblast of Akmola, including the capital of Nur-Sultan:
Mr. Aldiyar KAZTAYEV
street Balausa 2
Tel: +7 7172 59 22 26
Fax: +7 7172 59 21 77
Economic and Commercial Attaché (AWEX) in charge of Kazakhstan, Tadjikistan, Kirghizstan
Economic and Commercial Attaché: Mrs Aizhan MUSSAKANOVA
59A Amangeldy Road, Business Center "Shartas"
Office 3C (3rd Floor)
050012 ALMATY - Kazakhstan
Tel: (+7) 7272 676413 / (+7) 7272 676394
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