FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2011
KAZAKHSTAN STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Economic and Political Environment
Political climate in Kazakhstan remains stable.
Kazakhstan has completed its chairmanship
in the Organization for Security and Co-
operation in Europe (OSCE). This put more
emphasis on the importance of internal
political stability to ensure successful
implementation of the country's foreign policy
and Kazakhstan's OSCE agenda for 2010.
Although a secular state, Kazakhstan has
historically considered itself a part of the
global Muslim community and in 2011 will
chair the Organization of the Islamic
Conference (OIC). Astana desires to further
expand mutually advantageous cooperation
with Islamic countries and is committed to
more active engagement in the activities of
the OIC during its upcoming presidency.
Kazakhstan’s presidency of the OIC ministerial
council, coming in the wake of Astana’s recent
chairmanship of the OSCE, is expected to
open a new page of interrelations with the
other 56 member states and be a unique
chance to foster greater understanding and
cooperation between the Islamic world and
other confessions. The government of
Kazakhstan intends to contribute to the
adoption of a long-term program of OIC
financial and economic assistance with the
aim of showing support for less affluent
countries of the Islamic world in resolving
long-standing problems of poverty, illnesses,
illiteracy, hunger and debt burden.
Global political experts believe that
Kazakhstan’s chairmanship in OIC will bring
“fresh air” to the organization and hope for
positive changes in the international political
climate. Priority areas outlined by Kazakhstan
include issues of freedom of faith, cooperation
with Afghanistan, protection of religious.
In April 2011 Kazakhstan will have early
presidential elections. The current president is
supported by the majority of the population
and people credit him with ensuring stability
and prosperity.
The existing domestic political and economic
stability shows positive investment climate in
Kazakhstan which creates pre-requisites for
secure and profitable business for foreign and
domestic investors.
Economic Performance
2010 was marked by an improving economic
situation in Kazakhstan. GDP increased by 7%
and reached KZT21,513.47 bn (USD145.9 bn).
The substantial increase in GDP mostly
attributed to several fundamental
transformations in the economy as well as
improving environment in international
commodity markets. Prices of Kazakhstan’s
main export articles appeared to be higher
than forecasted, which led to an increase in
export-generated revenues and improved
foreign trade statistics. The positive trade
balance based on results of the first 9 months
of 2010 was as high as KZT3,314 bn
(USD 22.4 bn) with the positive current
account of the balance of payments reaching
KZT624.2 bn (USD 4.2 bn).
At the same time, the state budget deficit
made up 2.9% of GDP with the gap covered
through an issue of government securities by
the Ministry of Finance. Reduction in the state
budget deficit became possible due to
measures taken to drag Kazakhstan’s
economy out of crisis. The inflation rate
equaled 7.8% in 2010 - just as it was
assumed by the financial regulators at the
beginning of the year.
A significant positive impact on Kazakhstan’s
economy was made by successful completion
of debt restructuring of three large banks in
Kazakhstan, which defaulted on their liabilities
in spring 2009. According to various
estimates, Alliance Bank, BTA Bank and
Temirbank wrote off bad debts in the amount
of USD11 bn to USD12 bn; the remaining
debt was converted into shares and new
bonds of those banks.
Information obtained from the Exchange.
KAZAKHSTAN ECONOMIC CHARTS AND TABLES
Indicator
GDP, USD bn
GDP Change, %*
Unemployment, %
Budget Balance, % of GDP
CPI, %
USD/KZT
Net International Reserves, USD bn***
Gross International Reserves, USD bn***
National fund, USD bn***
Gold and foreign currency reserves, USD bn***
Gross Foreign Debt, USD bn
Trade Balance, USD bn
Current Account Balance, USD bn
2009
107.02
+1.2
5.7
-3.1
6.2
147.5
22.5
23.1
24.4
47.5
111.7
+15.2
-3.4
2010
145.95
+7.0
5.6**
-2.3*
7.8
147.4
27.7
28.3
30.6
58.9
109.8**
+16.5*
5.66*
* - data for the first six months of 2010
** - data for the first nine months of 2010
*** - assets of National Fund are not included in International reserves; gold and foreign currency reserves include
gross international reserves and national fund assets.
Key Information Contacts
Financial Institutions’ Association of Kazakhstan www.afk.kz/eng/
National Bank of Kazakhstan www.nationalbank.kz
Ministry of Finance of the Republic of Kazakhstan www.minfin.kz
Central Securities Depository www.csd.kz
Kazakhstan Agency for Financial Market and Financial Organizations Regulation and Supervision www.afn.kz
PAGE 80