The Dependence of the Kazakhstan Economy on the Oil Sector and the Importance of Export Diversification

Gulmira Azretbergenova, Aziza Syzdykova

Abstract


The recent decline in oil prices caused Kazakhstan, like many oil-dependent countries, to lose its financial resources and weaken economically. In Kazakhstan, which supplies about 50% of budget revenues from oil and petroleum products, the currency (KZT) has depreciated by 20% in the first and 60% in the second stage due to oil prices falling sharply in 2014. Also in March 2020, the Kazakh tenge, which was affected by the drop in oil prices, depreciated by 18%. The fact that oil revenues are not used correctly and strategically in time and the necessary attention to non-oil sectors has an effect on this.  In order to get out of this situation, it is important for Kazakhstan to give importance to the development of non-oil sectors and to ensure the development of exports in these sectors. In this study, the importance of the oil sector in Kazakhstan economy and the current situation of non-oil sectors are examined. In addition, suggestions and recommendations were given for the development of the non-oil sector and exports.

Keywords: Kazakhstan, oil sector, non-oil sector, diversification of exports

JEL Classifications: F43, F13, Q00

DOI: https://doi.org/10.32479/ijeep.9997


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