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

• Main Authors: Gulmira Azretbergenova, Aziza Syzdykova
• Format: Article
• Language: English
• Published: EconJournals 2020-10-01
• Series: International Journal of Energy Economics and Policy
• Online Access: https://econjournals.com/index.php/ijeep/article/view/9997

<p>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.</p><p><strong>Keywords: </strong>Kazakhstan, oil sector, non-oil sector, diversification of exports<strong></strong></p><p><strong>JEL Classifications:</strong> F43, F13, Q00</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.9997">https://doi.org/10.32479/ijeep.9997</a></p>