Analysis of the current parameters of foreign economic activity in Kazakhstan

Foreign economic activity (FEA) of any state, including Kazakhstan, covers diverse activities. The major direction is external trade [1].

Currently, the main directions of external relations of Kazakhstan with foreign partners are improving: export-import relations; joint enterprise (production, finances, external trade and etc.); the development of natural resources. The total volume of foreign trade of the Republic of Kazakhstan according to the Agency of the Republic of Kazakhstan on statistics excluding unorganized trade in 2015 year totaled 75 911,6 mil. US dollars and compared with the corresponding period last year decreased by 37,1%, herewith the value of export totaled 45 725,6 mil. US dollars (52,5% reduction), and import – 30 186,0 mil. US dollars (26,9% reduction). The trade balance was emerged positively and amounted to 15 539,6 mil. US dollars against 38 164,3 mil. US dollars last year (59,3% reduction). During the under review period of trends changing total turnover of goods had dynamics, which is shown in figure 1, including separately for exports and imports; branch and geographical structure of turnover.

Figure 1. Dynamics of external trade’s volume of Kazakhstan for 2011-2015 years billion US dollars. N o t e – compiled by the author of the source [2] 

According to statistics, trade partners of Kazakhstan are 198 countries around the world.

In 2015 year the specific gravity of the CIS in Kazakhstan exports amounted to 16,8%, European countries – 59,8%, Asian countries – 22,0%, The Americas – 1,7%. And the specific gravity of imports from CIS countries – 42,2%, European countries – 23,4%, Asian countries – 27,0%, The Americas – 6,6%. The main customers of Kazakhstan goods are: Italy (17,8%), China (12,0%), Netherlands (10,9%), Russia (9,5%), France (5,9%), Switzerland (5,8%), Romania (2,9%), Turkey (2,8%), Ukraine (2,6%).

The main countries supplying their products to Kazakhstan are: Russia (33,9%), China (16,8%), Germany (6,6%), USA (4,7%), Italy (3,9%), Ukraine (2,7%), Uzbekistan (2,4%), Turkey (2,5%), Korean Republic (2,0%), Japan (1,9%).

In 2015 year foreign trade turnover of the Republic of Kazakhstan with CIS countries amounted to 20, 417,1 mil. US dollars and compared with 2014 year decreased by 29,7%, including exports was recorded in the volume of 6 711,3 mil. US dollars – 24,1% reduction, import – 7, 664,8 mil. US dollars – reduction 34%. The trade balance was emerged negatively and amounted to 953,5 mil. US dollars.

The world economic crisis, decline of world oil prices, transition to the floating exchange of the national currency impacted negatively on exports and imports of the Republic in the CIS countries in 2015 year. CIS countries for Kazakhstan are main suppliers of mineral products, metals and metal items, machinery, equipment, vehicles, chemical products, products of animal and plant origin, food products. The share of imports of the goods in total volume of Kazakhstan’s imports amounts from 10% to 50%.

The share of CIS countries in the total volume of trade turnover of Kazakhstan in 2015 year amounted to 26,9% (in 2014 year – 23,7%). By volume of trade turnover of Kazakhstan with CIS countries in 2015 year at the first place stands Russia (14,6 billion US dollars), in the second place – Ukraine (2,0 billion US dollars), on the third place – Uzbekistan (1,7 billion US dollars), in the fourth place- Kyrgyzstan (0,7 billion US dollars), in the fifth place – Tajikistan (0,6 billion US dollars), then Belarus (0,5 billion US dollars), Turkmenistan (0,18 mil. US dollars), Azerbaijan (0,12 mil. US dollars), Moldova (0,09 mil. US dollars). Change in exports of the Republic in CIS countries in 2015 year to the level of 2014 year in value terms constituted: on products of animal and plant origin – 18,7% reduction, mineral products – 26,2% reduction (as a result of reduced oil supplies), chemical industry – 6,1% reduction, metals and metal items – 41,7% reduction, equipment and vehicles – 74,4% increase.

During the under review period, the share of imports (value) of Kazakhstan from the CIS countries from the total volume imports of such products amounted to Kazakhstan: on products of animal and plant origin, food products – 16,4% (15,0% in 2014 year), mineral products – 16,4% (15,3%), products of chemical industry – 13,1% (12,3%), metals and metal items – 12,9% (12,5), machinery, equipment and vehicles – 27,5% (30,8%). In 2015 year Kazakhstan imports from CIS countries as compared to the year 2014 products of animal and plant origin foodstuffs decreased by 20,8%, mineral products - 22,6%, products of chemical industry – 22,8%, metals and metal items – 25,1%, machinery and equipment – 35,2%. Kazakhstan also trades with foreign countries (table 1).

In 2015 year foreign trade turnover of the Republic of Kazakhstan with foreign countries amounted to 55 494,5 mil. US dollars, and compared with 2014 year decreased by 39,8%, including Kazakhstan exports (38 051,6 mil. US dollars) decreased by 44,4%, and import (17 442,9 mil. US dollars) – 26,4%. The trade balance (20 628,7 mil. US dollars) was emerged positively, but decreased in comparing with 2014 year. The specific gravity of foreign countries in the total volume of goods turnover in Kazakhstan amounted to 73,1%. 

Table 1

The total volume of external trade of the Republic of Kazakhstan with foreign countries for 2010-2015 years, mil. US dollars.

According to the Statistics Agency of the Republic of Kazakhstan in 2015 year the main share of trade turnover with foreign countries had to such countries as: China (13,9%), Italy (12,3%), Netherlands (7%), France (4,4%), Switzerland (3,7%), Germany (3,1%).

Trade turnover over the past year with the main trading partners decreased – with China almost 40%, with Russia also 40%. With the rest of the countries listed in table, mutual supply in value terms decreased not so significant.

Only Switzerland trade turnover decreased more than 1,5 times due to reorientation of commodity flows. As mentioned above, the greatest decline observed on Kazakhstan exports to China (1,8 times), to Russia (1,5 times). Besides it should be noted the decreasing supplies to Italy (2 times), to Netherlands (1,6 times), Turkey (1,7 times). The increase in exports is not observed during the under review period. Import by countries has no such decline ass exports.

The greatest reduction in imports is observed from China (1,5 times), from Russia (1,3 times). And import from Italy increased by 20%. The geographical structure of Kazakhstan import in recent years has not undergone significant changes, and the main suppliers are still Russia and China. The share of these two countries in the total volume is kept – 48-57%.

More than a half of trade turnover occupy mineral products and for the considered period their share significantly has not changed. It should be noted also insignificant fluctuations on mutual deliveries of chemical industry production, metals, machinery, equipment and vehicles. As well as in previous years, the main export goods for the last years were hydrocarbonic raw materials and metals to which share only 2015 the total volume was 84,7% , and for the considered period this indicator had only small hesitations – from 88,9 to 84,7%.

The structure of Kazakhstan import is more diversified and also has stable structure. Its main part (within 40% in various years) is occupied by machinery, equipment and vehicles. Its other component consisting of 4 groups of goods (production of chemical industry, mineral products, foodstuff, metals and metal items) for last years occupied from 49 to 51% of total volume.

The market of services of the Republic of Kazakhstan are dynamically developing. The foreign trade turnover of services of the Republic of Kazakhstan for 2014 has made 19,1 bil. US dollars, has grown relatively in 2014 by 10,3%, in terms of money for 1,8 bil. US dollars (table 2). 

Table 2

Foreign trade turnover of services of the Republic of Kazakhstan for 2011-2014 mil. US dollars.

In 2014 export of services has increased by 24% and amounted to 6,3 billion US dollars, import increased on average by 4,6% and amounted to 12,8 billion US dollars. For 2014 import of services has exceeded their export by 6,4 billion US dollars.

So, export for 2014 amounted to 6,3 billion dollars of USA, and increased by 24%. The main influence on its increase relatively 2013 year have rendered transport services (transportation of goods and passengers) which export increased by 35,6% or for 1008,4 mil. US dollars. More than a half of export of services was the share of transport services.

The residents’ profits on transport services is generally formed due to receipts from services in transportation of goods which in the reporting period amounted to 3,3 billion US dollars, on 10300,11 mil. dollars or 45,3% having exceeded the level of 2013.

Increase by 45,3% of cargo transport services provided to nonresidents the increased receipts for pipeline and rail transportation of freights through the territory of Kazakhstan (for 55,3%). Transportation of export goods by Kazakhstan auto – and air carriers was reduced by 13,4%.

At the same time, reduction of trade import has caused reduction by 13% of residents’ expenses by transportation of the goods imported to Kazakhstan. As a result of the analyzed period the positive imbalance of freight transportation was reduced more than in the 25th time to 53,49 mil. US dollars.

Import of services for 2014 year was emerged in the sum of 12,8 billion US dollars, for 4,6% exceeding a similar indicator of 2013 year. The considerable gain of import services, first of all, is provided with increase by 20,3% of import state services. The most scarce article of balance services are financial services which import relatively was reduced in 2013 by 53,3%.

In geographical structure of international trade in services of Kazakhstan of the CIS countries 39,7% of a foreign trade turnover services where the share following the results of the reporting period, from them of the Russian Federation – 20,8%, Uzbekistan – 3,1%.

• Thus, the foreign trade turnover of Kazakhstan is reduced for a variety of reasons in recent years: price falling of hydrocarbon raw materials in the world market;
• temporary rates delay of the Chinese developing economy;
• instability of currencies of the countries – the closest partners of Kazakhstan in particular ruble in Russia. As a result rise in price of Kazakhstan goods in these countries, etc.

List of references:

1. Foreign economic activity of the enterprise: UMO the Textbook/ Edited by Ivanov I. N. – M.: INFRA- M, 2011. – 297 pages.
2. Committee of the Republic of Kazakhstan statistically//http://www.stat.gov.kz