ECONOMY

Larissa SIDOROVA

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Larissa Sidorova, Academic secretary, Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan (Almaty, Kazakhstan)

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Macroeconomic Trends

In 2005, the republic pursued a policy of deepening the economic reforms launched in the early 1990s. In 2003-2005, the average GDP growth rate was over 9%, with a steady increase in industrial production, investment and other key indicators. Living standards in the country rose accordingly. Per capita GDP—an aggregate indicator characterizing the country’s economic development level—increased 1.7 times in 2003-2005, reaching $3,620 at the end of 2005 (compared to $1,052.1 in 1995 and $2,713.8 in 2004). The main efforts in 2005 were focused on a reform of the tax and tariff sphere and further development of the banking system, the insurance sector, the accumulative (financial defined contribution) pension system and the stock market. Steps were also taken to enhance the efficiency of the fuel-and-energy and extractive sectors, find new ways of ensuring economic growth, develop government support for business activity, promote regional economic policy, etc.

In recent years, virtually all international ratings assigned to Kazakhstan have been upgraded. For example, in terms of the Growth Competitiveness Index of the World Economic Forum (WEF), in 2005 the republic ranked 61st among 104 countries. This rank results from Kazakhstan’s 41st place in terms of the macroeconomic environment index and its 76th and 77th places, respectively, in terms of the public institutions index and the technology index. On 20 December, 2005, Fitch Ratings agency upgraded the country’s long-term foreign currency rating to “BBB” and its long-term local currency rating to “BBB+” and reaffirmed its F3 short-term foreign currency rating, with………

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