Download - FEAS xxx.fh9

More documents

Recommendations

Info

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005 KAZAKHSTAN STOCK EXCHANGE ECONOMIC AND POLITICAL DEVELOPMENTS Politic and Economic Environment: Kazakhstan's relatively progressive Central Asian transitional economy is gathering momentum as its massive oil potential materializes and multiple export alternatives develop. The East Kashagan oilfield with recoverable reserves of more than seven billion barrels is the largest oil discovery in more than 40 years. Diverse mineral reserves, including tungsten, lead, silver, barite and zinc, and agricultural production augment the country's hydrocarbon wealth. The non-oil economy has also grown at an average 8% clip from 2000-2002. Land ownership rights were clarified in early 2001 with the passage of legislation permitting private ownership for the first time in Kazakhstan. Recently 2,500 collectives have been converted into over 90,000 individual farms. Education, healthcare, pension, tax and government budgetary reform have all progressed significantly in the last two years. In April 1995, Nazarbayev's tenure as president was extended until Dec. 1, 2000, by a national referendum. More than 95% of those who went to the polls voted in favor of extending Nazarbayev's term. More than 91% of the potential electorate participated in the poll. Under pressure from parliament, however, Nazarbayev agreed to stand for re- PAGE 86 election in January 1999, and was reelected, winning nearly 80% of the votes cast. As he was elected for a seven-year term, the next presidential election is expected in 2006. President Nursultan Nazarbayev has been - and continues to be - Kazakhstan's central political figure and primary foreign and domestic policy-maker. Economic Performance: GDP growth rocketed along at 9.5% in 2002, following a very strong 13.5% growth rate in 2000. Growth is estimated at 10.6% in the first quarter of 2003. The petroleum sector is the driving growth factor, with increasing revenues welcoming foreign investment. The inflation rate remained inline at 6.5% in 2002, but inched upward to 7% in the beginning of 2003. The unemployment rate declined to 9.5% in 2002 from 10.5% in 2001, continuing a welcome downward trend. The fiscal balance remained in surplus in 2002, the equivalent of 1.6% of GDP from a deficit of 2.9% in 2001. Kazakhstan has made excellent progress in staunching expenditures and raising tax revenue, not only from oil production, which depends upon prices, but also from VAT reform. As oil prices recovered slightly in 2002 and imports of consumer and capital goods 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/ru Kazakhstan Agency for Financial Market and Financial Organizations Regulation And Supervision www.afn.kz ECONOMIC RATIOS Domestic savings Kazakhstan Lower-middle-income group Trade Indebtedness Investment GROWTH OF INVESTMENT AND GDP (%) 45 40 35 30 25 20 15 10 5 0 97 GDI GDP slowed, the trade deficit recovered slightly, pushing the current account deficit for the year to under 2% GDP from 3.6% 2001. Not surprisingly, Kazakhstan runs deficits on both its services and net factor income accounts within the current account of the balance of payments. Payments to foreign oil companies pursuant to production sharing agreements and joint ventures are reflected in these accounts, and given the very large inflows of foreign investment made already in the oil sector, the returns on those investments will quite likely keep the services and income accounts in deficit for years into the future. Foreign direct investment, concentrated in the oil and gas sector, has averaged over US$ 2 billion since 2000. Kazakhstan retired its outstanding IMF obligation of US$ 385 million ahead of schedule and reduced public external debt to 14% GDP in 2002. Foreign currency reserves reached more than US$ 3 billion by year-end 2002, up from US$ 2 billion in 2001. This trend continued into the first quarter of 2003 with US$ 4 billion in reserves. 1 1 Economic and Political Overview, County Watch Incorporated, 2005 98 99 00 01 02 03 * World Bank reports
FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005 KAZAKHSTAN STOCK EXCHANGE KAZAKHSTAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN Sector % GDP % Employment Agriculture 10.0 20.7 Industry 30.0 32.2 Services 60.0 47.2 KAZAKHSTAN MONEY SUPPLY, INTEREST RATES AND FOREIGN EXCHANGE RESERVES GROWTH OF EXPORTS AND IMPORTS (%) 25 20 15 10 5 0 -5 -10 -15 EXPORT AND IMPORT LEVELS (US$ Millions) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 97 98 99 00 01 02 03 INFLATION (%) Exports Imports GDP deflator CPI Exports 97 Imports 98 99 00 01 02 03 1998 1999 2000 2001 2002 Money Supply M1 (tenges-billions) 119 206 236 270 382 Money Supply M2 (tenges-billions) 149 274 397 557 724 Growth Rate M1 -21.3% 73.4% 14.7% 14.3% 41.5% Growth Rate M2 -14.1% 84.4% 45.0% 40.2% 30.0% Interest Rates deposit rate 23.6% 15.6% 6.6% 5.3% 5.5% E lending rate 25.0% 18.0% 14.0% 9.0% 7.5% Foreign Exchange Reserves (US$ millions) 1,461 1,479 1,594 1,997 2,551 Exchange Rate Period Average (tenges/US$) 78.30 119.52 142.13 146.74 153.28 Annual % Growth 3.79 52.64 18.92 3.24 4.46 E: Estimate * Economic Overview, Country Watch Incorporated, 2005 18 12 6 0 CURRENT ACCOUNT BALANCE TO GDP (%) 3 2 1 0 -1 -2 -3 -4 -5 97 97 98 99 00 01 02 03 98 99 00 01 02 03 * World Bank reports PAGE 87
Page 1:
FEDERATION OF EURO-ASIAN STOCK EXCH
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 20 and 21:
Page 22 and 23:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 120: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 139 and 140:
Page 141:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166:
show all

Download - FEAS xxx.fh9

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?