Excluding Russia, Kazakhstan is the largest of the former Soviet Republics, possessing enormous fossil fuel reserves and plentiful supplies of various other minerals and metals.

Since independence from Russia in December1991, the government’s strict economic and structural reforms as well as a fast-paced privatisation programme have helped revive Kazakhstan’s economy, making it the most economically developed country in central Asia. As a result of improved relations with Russia, in 2003 trade with that country increased by 30 percent over 2002, reaching US$5 billion.

The predominant pattern of trade has continued from the Soviet era: exports are mostly raw materials and imports are mostly finished goods. Ferrous and non-ferrous materials (mainly rolled steel, copper, ferroalloys, zinc, titanium and aluminium) count for 40 % of export earnings, followed by oil and petroleum products (33%) and chemicals (10%). The important trading partners are Germany, The Netherlands, Switzerland, the Czech Republic and Italy. Non-CIS Asian countries account for 11% of trade, with China being the major partner in this category.

The Central Intelligence Agency’s World Fact Book reported Kazakhstan enjoying double-digit growth in 2000-01 and 9% or more, per year in 2002-05 – mostly thanks to its booming energy sector, but also to economic reform, good harvests, and foreign investment.

In September 2002, Kazakhstan became the first of the former Soviet republics to have received an investment grade credit rating.

The Kazakh banking system is developing rapidly, with capitalisation now exceeding $US 1billion. The National bank has introduced deposit insurance in its campaign to strengthen the banking sector. Several major foreign banks have branches in Kazakhstan, including ABN-AMRO, Citibank and HSBC.