Why is kazakhstan poor

The regions of Akmola, Karagandy and East Kazakhstan have the highest level of inequality and are among the poorest in the country, even though their GDP per capita is growing the fastest. It could be said that the face of poverty in Kazakhstan is its regional disparity. Though the poverty rate looks low, the relative median consumption level poverty in Kazakhstan could be as much as 20 percent of the population. Food represents 60 percent of the overall consumption of poor households.

Though Kazakhstan has achieved percent literacy, it still lacks access to clean water, sanitation facilities, health services and prevention against HIV. The government provides a social protection system that includes social insurance benefits, social assistance and social services. At just 27 years old, these top 10 facts about poverty in Kazakhstan are indicative of a young country that has the potential to be at the forefront of world oil and agriculture markets and, someday, a significant participant in the global economy.

Blog - Latest News. Top 10 Facts About Poverty in Kazakhstan Kazakhstan has a large agriculture market and is the sixth largest wheat producer in the world. Nearly 80 percent of cultivation is done with machinery near the end of its lifecycle — local production of tractors, combines and other farm machinery are mostly non-existent, causing a large tab for importing expensive farming equipment mostly from Russia.

This low return on investment ROI for Kazakh farmers leaves little to pay a significant percentage of its workforce; this lack can then leaves employees in the agricultural industry near or below the poverty line.

These coops aim to help offset the low ROI for small, rural farmers by helping with buying new machinery, storage and transport products, veterinary services and other business costs. The nation also has massive reserves of natural gas, coal and uranium. The Government set price caps on some staple food products and introduced export quotas on grain.

The NBK tightened monetary policy and increased the policy rate by 0. In June , banks recorded a return to assets of 3. The authorities continue to implement reform measures and revoked the licenses of two small banks. The employment level recovered, and real wages increased in the second quarter of Although the rate of temporary leave among low-wage workers is still high compared to other income groups, it showed a declining trend. As a result, the poverty rate is expected to fall to 13 percent in Economic activity is projected to recover to its pre-pandemic level by end, with growth of 3.

Improving growth prospects in foreign markets will buoy external demand for commodities. Household consumption growth will continue, aided by a rebound in income.

A recovery in exports and improved prospects for FDI in the mining sector, along with planned housing and infrastructure projects, are expected to restore investment growth. Fiscal policy will remain supportive over the medium term. The budget will continue to prioritize spending on social assistance, education, human capital, infrastructure, and support to SMEs.

Government debt is projected to increase further through as the authorities slowly withdraw the fiscal support to the economy. Inflation will remain above the target range of 4—6 percent in and is expected to decline gradually in the following years, as the effect of the temporary pandemic-linked factors wanes. However, the rising cost of intermediate goods, real wage growth, and an expansionary fiscal stance with significant direct lending provisions could keep inflation high.

With only a third of the population fully vaccinated by end-August, the vaccine rollout remains a prime concern. Without higher coverage, COVID will continue to threaten the recovery, and increasing prices and absences from work could delay the reduction in poverty. Volatile oil prices and uncertainty over the scale of global demand for hydrocarbons are additional risks that could weaken exports and put pressure on the exchange rate.

The recent increase in housing prices is making homeownership less affordable, and a steady rise in mortgage lending, along with the lifting of forbearance measures, could expose the banking sector to higher NPLs in the event of future shocks.

Moreover, with its heavily reliance on hydrocarbons, the country faces challenges arising from the need to reduce emissions and to promote a low-carbon transition. For Kazakhstan, innovation has the potential to unleash the private sector as the country strives to build a more diversified and competitive economy.

The domestic output is expected to reach its pre-pandemic level in quarter 3 of The Panel discussed the support given to firms and poor households. They should assume that the pandemic will have an impact for another years. Experts agreed on the urgency to addressing the long-standing problems that diminish productivity growth and strengthening the quality of social measures to protect the most vulnerable.