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Recent Changes in the Non-Oil Sector of the Economy of Kazakhstan

28.02.2017 | E-Bulletin | Economy | 55 Kanat Makhanov

Last year was marked by significant changes in the economic structure of Kazakhstan. As a result of low oil prices, the crude oil export revenues reduced to $22.3 billion, which is even lower than in 2015 when it was $31.1 billion and three times lower than in 2011 when it reached $62.3 billion. Despite the fact that the share of the oil sector in the production of goods excluding the service sector slightly increased from 35.6% in 2015 to over 35.9% in 2016, it is worth noticing that during the last year the share of the oil sector in exports of Kazakhstan reduced from 75%-80% to 60% in average. Therefore, decreasing size of the oil sector of the economy in exports and uncertainties in future oil prices combined with budget deficits (8%-11%) that persist throughout the last 5-6 years raise concerns over the possibilities of economic growth in the near future. Consequently, the development of the non-oil sector and its increasing share in exports are of significant importance for the economy of Kazakhstan.

Tags: Kazakhstan, Non-Oil Sector, Economy

Author

  • Junior Research Fellow

    Kanat Makhanov

    Kanat Makhanov is a research fellow at the Eurasian Institute of the International H.A Yassawi Kazakh-Turkish University. He holds a BA in Business Economics from the KIMEP University from 2012.