What economic factors make Kazakhstan a leader in Central Asia?

Undoubtedly, Kazakhstan is a leading country in the Central Asian region. Its territory is almost twice the size of other countries in the area. It has the second-largest economy in the post-Soviet space and the largest in the Central Asian region. In 2020, the total GDP of the Central Asian region amounted to $ 290 billion, of which 58.62% fell to the share of Kazakhstan. It ranks second in the CIS after Russia in terms of GDP per capita ($ 10,694).

Due to its rich natural resources, the main sectors of the economy are oil and gas and other minerals. Thus, Kazakhstan ranks 11th in the world in terms of oil reserves (4.4 billion tons) and 22nd in natural gas reserves (3.8 billion cubic meters). Kazakhstan is the world's largest uranium producer. In 2020, the country produced 19,800 tons of this radioactive metal, about 41% of global reserves. In total, its uranium reserves are estimated at 907,000 tons (15% of world reserves). Uranium production has increased more than 20 times since independence.

In Kazakhstan, economic modernization and the growth of quantitaty have been key priorities. Over the past 30 years, oil production has risen 3.3 times and gas production 6.4 times. During the period of independence, GDP has grown by 17 times, and GDP per capita by 13 times. Trade turnover rose from $ 1.5 billion in 1991 to $ 86.5 billion in 2020, including $ 47.5 billion in exports. Over the past 20 years, the number of small and medium enterprises has increased 5.5 times. The share of Kazakhstanis with incomes below the subsistence level fell from 34.6% in 1995 to 5.3% in 2020. The unemployment rate sank to 4.9%. Life expectancy reached 73.3 years.

Over the past period, systematic work has been done to ensure economic security and, as a result, political independence. It is no coincidence that more than 50% of its exports fall to the share of the European Union and the United Kingdom despite its proximity to two superpowers, China and Russia. To date, over $ 365 billion in direct investment has been attracted from more than 120 countries. The largest foreign investors (84% of the total) are the United States, the European Union, and the United Kingdom. More than 21,000 companies with foreign capital operate in the country.

Kazakhstan's international reserves are estimated at $ 90.5 billion, which allow the state to create a reliable airbag for crisis times. Thus, during the global coronavirus pandemic, an anti-crisis package worth $ 10 billion (6-7% of GDP) was formed to minimize its effects. For comparison, this figure was 950 million euros in Uzbekistan, the second most stable economy in the region.