FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
KAZAKHSTAN STOCK EXCHANGE
CAPITAL MARKET DEVELOPMENT AND ECONOMIC OUTLOOK
Economic and Political Environment
2011 was a year when Kazakhstan celebrated
its 20th Independence anniversary. During the
years of independence Kazakhstan managed
to achieve economic growth of average 8%,
political stability, supported by large natural
resources reserves and timely reforms.
A number of developments have taken place
in the political system of the country. Early
presidential election was conducted in April
2011 and incumbent President Mr. Nursultan
Nazarbayev has won it with astonishing 95.5%
votes. This proves the ubiquitous support he
has among the population and approval of his
actions and political course.
The lower house of Parliament, Mazhilis,
was dissolved in November 2011, and on
January 15, 2012, an early election was held.
This resulted in changes in political parties
representation in Mazhilis, with three parties
instead of one. Subsequently, this led to
changes in the Cabinet, with Prime-Minister
unchanged.
Continuing integration within the Eurasian
Economic Community framework leads to
establishing Common Economic Space (CES)
between Republic of Kazakhstan, Russian
Federation and Republic of Belarus that will
fully operate from July 2012. Under CES three
countries will establish comfortable conditions
for free trade and movement of goods,
services, capital and labor. CES is the result of
successful operation of Customs Union and is
developed on the principles of the World Trade
Organization.
In 2011, Kazakhstan has made an important
step towards development of Islamic financing.
In the beginning of June 2011, the World
Islamic Economic Forum has taken place
in Astana, gathering business leaders from
more than 50 countries. During the Forum
Islamic Development Bank signed contracts
to provide US$ 10 ml for development of
farm enterprises in Kazakhstan. This event
is of a great significance more so due to the
plans on formation of the regional center of
Islamic financial center in Kazakhstan. It is
also worth noting that Kazakhstan will chair
the Organization of the Islamic Conference
until July, 2012, being the second Central
Asian country after Tajikistan to chair it since its
inception in 1969.
Moreover, European Bank for Reconstruction
and Development held their 2011 Annual
Meeting in Astana, in May 2011. This event
brought together the members of EBRD Board
of Governors, leaders in world banking industry,
investors, policy-makers and government
officials to discuss recovery issues in the region
and provide guidance to Bank’s operations for
the next period.
Economic Performance
2011 was a positive year for Kazakhstan. The
planned GDP growth of 7% has been achieved
and surpassed – Kazakhstan economy
production has amounted to KZT 27.3 tr or
US$ 186.20 bn for 2011 with 7.5% growth. The
unemployment rate has decreased to 5.4%.
Budget deficit has lowered to 0.7% of GDP. Net
international reserves have grown to US$ 28.8
bn. National Fund assets have increased to
US$ 43.7 bn. Kazakhstan’s trade balance for 9
months of 2011 has already exceeded previous
year indicator and has made up to US$ 36.3 bn.
Current account surplus has amounted to US$
11.3 bn for 9 months of 2011.
Considering Kazakhstan’s improving fiscal and
external flexibility, sizeable natural resources,
and high inflow of foreign direct investments,
Standard & Poors has increased country’s
long- and short-term foreign currency ratings
to ‘BBB+/A-2’ from ‘BBB/A-3’. In the same
time, Fitch Ratings has upgraded Kazakhstan’s
Long-term foreign and local currency Issuer
Default Ratings to ‘BBB’ from ‘BBB-’ and
‘BBB+’ from ‘BBB’, respectively. According to
the Fitch Ratings GDP growth is expected to be
6% in real terms in the following years while the
budget surplus will be obtained even if oil prices
will slump to the level of US$ 80 per barrel of
Brent crude.
KAZAKHSTAN ECONOMIC CHARTS AND TABLES
Indicator
GDP, US$ bn
GDP, Change. %
Unemployment, %
Budget Balance, % of GDP
CPI, %
US$/KZT
Net International Reserves, US$ bn
National Fund, US$ bn
Sovereign Debt, US$ bn
Export, US$ bn
Trade Balance, US$ bn
Current Account Balance, US$ bn
2010 2011
145.96
7.0
5.8
-2.5
8.0
147.4
27.7
31.0
21.9
60.8
28.9
3.0 186.20*
7.5
5.4
-0.7
7.4
146.6
28.8
43.7
22.8
66.7**
36.3**
11.3**
* Operational data for 2011 (official data will be released in April, 2012)
** Data as of October 01, 2011
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 75