KZ

COUNTRYPROFILE KAZAKHSTAN

IMD World Competitiveness Yearbook 2021, Digital 2021, Talent 2021: summaries

WORLD COMPETITIVENESSRANKING 2021

All data are available from theWorld Competitiveness Online.

Visit our eShop

1

BASIC FACTSCapital

Land area (square km '000) 2,7252020

Exchange Rate (per $) 412.9532020

Population - market size (millions) 18.882020 32

Gross Domestic Product (GDP) (US$ billions) 169.82020 47

GDP (PPP) per capita (US$) 26,5562020 46

Real GDP growth (%) -2.62020 13

Consumer price inflation (%) 6.802020 61

Unemployment rate (%) 4.902020 21

Labor force (millions) 9.182020 31

Current account balance (% of GDP) -3.452020 56

Direct investment stocks inward ($bn) 149.42019 39

Direct investment flows inward (% of GDP) 1.832019 39

PEER GROUPS RANKINGSEUROPE - MIDDLE EAST - AFRICA (41 countries) POPULATIONS < 20 MILLION (35 countries)

OVERALL PERFORMANCE (64 countries) Rank

Nur-Sultan

CHALLENGES IN 2021Mass vaccination against COVID-19.

Reloading the education system.

Economic Research Institute, JSC of the Ministry of National

Economy of the Republic of Kazakhstan, Nur-Sultan

COMPETITIVENESS LANDSCAPE

COMPETITIVENESS TRENDS - OVERALL

KAZAKHSTAN

32 38 34 42 35

2017 2018 2019 2020 2021

37

58

47

24

1319

5

46

2529

43

20

46

13

23 25

5257 55

45

Dom

estic

Eco

nom

y

Inte

rnat

iona

l Tra

de

Inte

rnat

iona

l Inv

estm

ent

Empl

oym

ent

Pric

es

Publ

ic F

inan

ce

Tax

Polic

y

Inst

itutio

nal F

ram

ewor

k

Busi

ness

Leg

isla

tion

Soci

etal

Fra

mew

ork

Prod

uctiv

ity &

Effi

cien

cy

Labo

r M

arke

t

Fina

nce

Man

agem

ent

Prac

tices

Att

itude

s an

d V

alue

s

Basi

c In

fras

truc

ture

Tech

nolo

gica

l Inf

rast

ruct

ure

Scie

ntifi

c In

fras

truc

ture

Hea

lth a

nd E

nvir

onm

ent

Educ

atio

n

Economic Performance Government Efficiency Business Efficiency Infrastructure

20 25 2128 23

2017 2018 2019 2020 2021

20 24 2026 22

2017 2018 2019 2020 2021

• Mass vaccination against COVID-19.• Reloading the education system.• Effective support for SMEs during the recovery period for

further growth.• Reconfiguration of ‘cross-cutting policies’ (fiscal, monetary,

investment).• Results-based public administration.

Provided by:Economic Research Institute, JSC of the Ministry of National Economy of the Republic of Kazakhstan, Nur-Sultan

2

IMPROVEMENTSWCY 2020

WCY 2021 DECLINES

WCY 2020

1.1.18 Gross fixed capital formation - real growth 5.42 13.76 1.4.04 Employment - long-term growth -0.64

4.2.16 High-tech exports (%) 22.28 29.78 2.1.02 Government budget surplus/deficit (%) -1.35

3.2.21 Brain drain 3.26 4.31 3.2.14 Labor force long-term growth -0.98

4.2.07 Internet users 563 723 1.1.15 Real GDP growth per capita 2.88

4.1.07 Population - growth 1.57 1.96 1.1.14 Real GDP growth 4.5

2.4.11 Parallel economy 2.91 3.53 1.1.13 Economic complexity index 0.09

2.3.07 Foreign currency reserves per capita 1,564 1,888 4.4.17 Exposure to particle pollution 13.97

4.4.26 Pollution problems 4.25 5.01 4.3.16 Patent applications per capita 8.96

1.1.09 Gross fixed capital formation (%) 21.2 24.9 2.1.04 Total general government debt (%) 19.79

3.3.01 Banking sector assets 50.32 58.69 1.2.12 Exports of commercial services ($bn) 7.37

1.3.13 Relocation threats of business 4.37 4.98 1.5.01 Consumer price inflation 5.24

2.1.09 Pension funding 4.11 4.65 1.2.13 Exports of commercial services (%) 4.11

4.5.16 Management education 4.91 5.50 1.2.08 Exports of goods ($bn) 57.31

2.3.13 Bribery and corruption 5.01 5.59 4.5.08 Women with degrees 77.8

4.4.28 Quality of life 4.77 5.28 2.4.07 Government subsidies 0.94 1.11

-4.22

-2.6

-0.04

21.05

4.87

26.55

5.01

63.4

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

KAZAKHSTANCOMPETITIVENESS EVOLUTIONThe criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2021

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

6.80

2.95

46.45

-7.09

-4.28

-4.49

5.5%14.5%16.4%19.1%19.1%23.6%28.2%29.1%30.9%40.0%40.9%42.7%45.5%46.4%60.0%

0% 10% 20% 30% 40% 50% 60% 70%

Strong R&D cultureCost competitiveness

Competency of governmentHigh educational levelReliable infrastructure

Quality of corporate governanceSkilled workforce

Effective legal environmentEffective labor relations

Open and positive attitudesCompetitive tax regime

Policy stability & predictabilityAccess to financing

Dynamism of the economyBusiness-friendly environment

3

WORLD COMPETITIVENESSDIGITAL RANKING 2021

All data are available from theWorld Competitiveness Online.

Visit our eShop

4

Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 211 4 4 2 2

2017 2018 2019 2020 2021

38 38 35 36 32

40 35 32 34 36

35 39 39 41 40

38 40 35 33 28

OVERALL

Future readiness

COMPETITIVENESS & DIGITAL RANKINGS

PEER GROUPS RANKINGS

EUROPE - MIDDLE EAST - AFRICA (41 countries) POPULATIONS < 20 MILLION (35 countries)

Knowledge

Technology

DIGITAL TRENDS - OVERALL

KAZAKHSTAN

OVERALL PERFORMANCE (64 countries)

OVERALL & FACTORS - 5 years

38 38 35 3632

32

38

34

4235

2017 2018 2019 2020 2021

Digital

Competitiveness

27 26 24 25 21

2017 2018 2019 2020 2021

24 25 22 22 20

2017 2018 2019 2020 2021

36 45 14 54

40 22 51 4732

28 32 6 44

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

5

u Overall top strengths

w Overall top weaknesses

Subfactors 2017 2018 2019 2020 202136 44 39 49 45

21 6 1 4 14

56 55 55 54 54

Talent Rank Rank Rank

Educational assessment PISA - Math 47 22 w 60 International experience 29 w 62 49 Foreign highly-skilled personnel 25 u 1 u 3 Management of cities 32 39 24 Digital/Technological skills 50 31 54w Net flow of international students 59 u 3 57 -

Subfactors 2017 2018 2019 2020 202118 22 16 23 22

51 59 54 55 51

35 42 43 48 47

Regulatory framework Rank Rank Rank

Starting a business 11 - 51u Enforcing contracts 4 27 49 Immigration laws 24 41 56 Development & application of tech. 33 48 43 Scientific research legislation 34 37 54 Intellectual property rights 43 w 62 9

Subfactors 2017 2018 2019 2020 202148 47 39 33 32

27 43 15 13 6

39 44 46 46 44

Adaptive attitudes Rank Rank Rank

E-Participation 25 27 27 Internet retailing 49 - 28 Tablet possession 43 30 43 Smartphone possession 28 6 w 59 Attitudes toward globalization 27 32 u 1

Scientific concentration

Training & education Scientific concentration

Talent

Robots in Education and R&D

FUTURE READINESS

IT integration

Business agility IT integration

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

KAZAKHSTAN

TECHNOLOGY

Technological framework

Capital Technological framework

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capita

Training & education

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Regulatory framework

Capital

IT & media stock market capitalization Communications technologyFunding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Higher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

Employee training

KNOWLEDGE

Agility of companies Cyber securityUse of big data and analytics Software piracyKnowledge transfer Entrepreneurial fear of failure

6

WORLD TALENTRANKING 2021

All data are available from theWorld Competitiveness Online.

Visit our eShop

7

Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

w 2.9 % 60w 988 US$ 57 17.21 ratio 44u 7.68 ratio 2 5.55 Survey [0..10] 25 6.40 Survey [0..10] 22u 48.49 % 8 4.78 Survey [0..10] 44

Value

u 52.10 index 3 6.53 Survey [0..10] 35 5.55 Survey [0..10] 38 4.31 Survey [0..10] 37 5.28 Survey [0..10] 45 5.68 Survey [0..10] 25w 6,244 US$ 58w 16,000 US$ 62u 1.26 % 7 5.76 Survey [0..10] 29 21.05 micrograms 47

Value

-0.44 % 36 5.68 Survey [0..10] 34 6.51 Survey [0..10] 29 5.73 Survey [0..10] 29u 6.40 Survey [0..10] 18 5.24 Survey [0..10] 45 24.73 % 32 5.11 Survey [0..10] 48 5.50 Survey [0..10] 48 4.94 Survey [0..10] 49 1.23 number 49w 402 Average 53

Investment & Development 2021 Rank

Health infrastructure meets the needs of society

2021 Rank

Total public expenditure on education Percentage of GDP

ApprenticeshipsEmployee training is a high priority in companies

Readiness 2021 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Management education meets the needs of the business community

International experience of senior managers is generally significant

Competent senior managers are readily available

Primary and secondary education meets the needs of a competitive economy

Labor force growth Percentage change

Skilled labor is readily available

Finance skills are readily available

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Collected personal income tax On profits, income and capital gains, as a percentage of GDP

Justice is fairly administered

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Remuneration in services professions Gross annual income including supplements such as bonuses, US$

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Total public exp. on education per student Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education)

KAZAKHSTAN

Ratio of students to teaching staff

Pupil-teacher ratio (secondary education) Ratio of students to teaching staff

are sufficiently implemented

Female labor force Percentage of total labor force

Cost-of-living index Index of a basket of goods & services in the main city, including housing (New York City = 100)

Talent Ranking 2021

OVERALL PERFORMANCE (64 countries)

30

4038

44

41

23

30

3941

42

37

49

39

47

39

32

42

38

50

43

2017 2018 2019 2020 2021

Overall

Investment &Development

Appeal

Readiness

42

3941

43

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

8

2021

2021

IMD WORLDCOMPETITIVENESSYEARBOOK

IMD

Wor

ld C

ompe

titiv

enes

s Ye

arbo

ok

About the Institute for Management Development (IMD)

The Institute for Management Development (IMD) is an independent

academic institution with Swiss roots and global reach, founded 75

years ago by business leaders for business leaders. Since its creation,

IMD has been a pioneering force in developing leaders who transform

organizations and contribute to society.

Based in Lausanne (Switzerland) and Singapore, IMD has been ranked

in the Top 3 of the annual FT’s Executive Education Global Ranking for

the last nine consecutive years and in the top fi ve for 17 consecutive

years. Our MBA and EMBA programs have repeatedly been singled out

among the best in Europe and the world.

We believe that this consistency at the forefront of our industry is

grounded in IMD’s unique approach to creating “Real Learning. Real

Impact”. Led by an expert and diverse faculty, we strive to be the trusted

learning partner of choice for ambitious individuals and organizations

worldwide. Challenging what is and inspiring what could be.

www.imd.org

IMD, IMD INTERNATIONAL, REAL LEARNING. REAL IMPACT, IMD BUSINESS SCHOOL and IMD WORLD COMPETITIVENESS YEARBOOK are trademarks of IMD - International Institute for Management Development