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.

Source: The CIA World Factbook - Kazakhstan



Your advisors at the Chamber of Commerce

Regina Khvastunova

Contact us: cis@cc.lu


Key indicators

Area
2,724,900 km2
Population
19,245,793 (July 2021 est.)
Government type
presidential republic
Languages
Kazakh (official, Qazaq) 74% (understand spoken language), Russian (official, used in everyday business, designated the "language of interethnic communication") 94.4% (understand spoken language) (2009 est.)
GDP
$169.835 billion (2020 est.)
Growth rate
-2.6% (2020 est.)
HDI
51
Capital
Astana

Macroeconomic indicators

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.

Source: The CIA World Factbook - Kazakhstan

IMF Statistics:

Subject descriptor 2021 2022 2023 2024 2025

Gross domestic product, constant prices

Percent change

(Units)

4.100

3.299

5.101

3.109

5.648

Gross domestic product, current prices

Percent change

(Billions)

197.112

225.529

260.510

296.740

312.990

Gross domestic product per capita, current prices

Percent change

(Units)

10,373.791

11,486.060

13,116.815

14,778.424

15,425.753

Inflation, average consumer prices

Percent change

(Units)

8.002

14.956

14.558

8.671

6.975

Volume of imports of goods and services

Percent change

(Units)

-10.731

14.058

26.253

5.976

4.123

Volume of exports of goods and services

Percent change

(Units)

-3.765

1.878

15.542

4.915

12.739

Unemployment rate

Percent change

(Units)

4.900

4.875

4.775

4.775

4.775

Current account balance

Percent change

(Billions)

-2.672

7.079

-9.804

-13.291

-8.372

Current account balance

Percent change

(Units)

-1.356

3.139

-3.763

-4.479

-2.675

Estimates

Source: IMF Statistics - Kazakhstan


Relationships with Luxembourg

Existing conventions and agreements

Non double taxation agreement

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

  • Convention from 26.06.2008 (Memorial 2013, A No.114, p.1733)
  • Effective as of 01.01.2014 (Memorial 2013, A No.114, p.1733)
  • Amendment of the Convention from 03.05.2012 (Memorial 2013, A No.114, p.1745)
  • Effective as of 01.01.2014 (Memorial 2013, A No.114, p.1733)

 


Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact points in Kazakhstan

Embassy of the Grand Duchy of Luxembourg in Kazakhstan

Ambassador with residence in Moscow: Mr Tom Reisen

Khrouchtchevsky Pereoulok 3
119034 Moscou
Russia

Tel.: (+7-495) 786 66 63
Consular Tel.: (+7–495) 786 66 65
Fax:(+7-495) 786 66 69
Consular Fax: (+7-499) 786 66 67
E-Mail: moscou.amb@mae.etat.lu 
Website: www.moscou.mae.lu 

Other useful links


Chamber of Commerce and the country