Economic Indicators

GDP grew 8.2% in 2007, due to an improving business environment. The economy is expected to grow 7.0% in 2008, and 6.5% in 2009. GDP growth has slowed to 7.1% in the first half of 2008 from 8.8% in the same period from the previous year, reflecting contagion effect from neighboring Kazakhstan through trade, investment, and remittance channels.

The government made steady strides in controlling its substantial fiscal deficit, nearly closing the gap between revenues and expenditures in 2006. In October 2008, the parliament enacted a business friendly tax code which reduced the number of taxes (down to eight from sixteen) and their respective rates (VAT, for example, was reduced from 20% to 12%). The country is making progress in fighting corruption, restructuring domestic industry and in attracting foreign investment.