Kazakhstan, the largest of the former Soviet republics in
territory, excluding Russia, possesses enormous fossil fuel reserves as well as plentiful supplies
of other minerals and metals. It also is a large agricultural - livestock and grain - producer.
Kazakhstan's industrial sector rests on the extraction and processing of these natural resources
and also on a growing machine-building sector specializing in construction equipment, tractors,
agricultural machinery, and some defense items. The breakup of the USSR in December 1991 and the
collapse in demand for Kazakhstan's traditional heavy industry products resulted in a short-term
contraction of the economy, with the steepest annual decline occurring in 1994. In 1995-97, the
pace of the government program of economic reform and privatization quickened, resulting in a
substantial shifting of assets into the private sector. Kazakhstan enjoyed double-digit growth
in 2000-2001 (and a solid 9.5% in 2002) thanks largely to its booming energy sector, but also
to economic reform, good harvests, and foreign investment. The opening of the Caspian Consortium
pipeline in 2001, from western Kazakhstan's Tengiz oilfield to the Black Sea, substantially raised
export capacity. The country has embarked upon an industrial policy designed to diversify the economy
away from overdependence on the oil sector, by developing light industry. Additionally, the policy
aims to reduce the influence of foreign investment and foreign personnel; the government has engaged
in several disputes with foreign oil companies over the terms of production agreements, and tensions
continue.
Gross Domestic Product (GDP) composition by sector:
agriculture 7.9%, industry 35.4%, services 56.7% (2002)
Labor force (by occupation): industry 30%,
agriculture 20%, services 50% (2002)
Unemployment rate: 8.6% (2003)
Industries: oil, coal, iron ore, manganese, chromite, lead, zinc, copper,
titanium, bauxite, gold, silver, phosphates, sulfur, iron and steel;
tractors and other agricultural machinery, electric motors, construction materials
Agriculture - products: grain (mostly spring wheat), cotton; livestock
Exports - commodities: oil and oil products, ferrous metals, chemicals,
machinery, grain, wool, meat, coal (2001)
Exports - partners: Bermuda 20.8%, Russia 15.5%, China 10.6%, Italy 9.3%,
Switzerland 8.2%, UAE 4.9% (2002)
Imports - commodities: machinery and equipment, metal products,
foodstuffs (2001)
Imports - partners: Russia 38.7%, Germany 8.9%, US 7%, China 4.8% (2002)