SES will bring positive effects for Kazakhstan, think tank says

Experts believe the overall effect of the development of integration ties on the SES countries is valued at US$ 909 billion in 2011-2030. In the 2010prices, the effect on Russia will amount to about US$ 632 billion, on Kazakhstan - US$ 106 billion, and Belarus - US$ 170 billion. The assessment was presented in the EDB Integration Research Centre's "Assessment of Economic Effects of the SES and Ukraine's Accession" report.

At the same time the final effect of the creation of the SES and the possible accession of Ukraine in the prices of 2010 for the four countries, including Russia, Kazakhstan, Belarus and Ukraine, can be estimated at US$ 1.1 trillion, the Kazakh MFA said. 

Experts also note that Kazakhstan's economy remains largely dependent on the dynamics of hydrocarbon production, mainly due to its relatively high potential of increased oil and gas production. Exports to the SES countries are growing, although it remains at a relatively low level in relation to the country's GDP. At the same time, the integration process through the matching technological level of production, and the processes of reduction of its energy and materials provide additional GDP volume, which by the end of the forecast period will reach 4% of the GDP value in the baseline scenario.

It is also expected that the structure of Kazakhstan's economy will see a gradual decline in the share of mining and metallurgy sectors. At the same time there will be a rapid increase in the service sector, mechanical engineering, and transport and communication which will ensure the growth in their share of gross output.

The EDB is an international financial institution which was established by Russia and Kazakhstan on January 2006 with the purpose of developing market economies of member states, their sustainable economic growth and expand mutual trade and economic relations. The EDB's authorised capital exceeds US$ 1.5 billion. The Bank's member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.

The EDB Integration Research Centre was established in June 2011. Its goal is to promote research on regional economic integration issues.