Question:To what extent is Kazakhstan participation in Eurasian Economic Union feasible in conditions of global economic growth slowdown?
Answer:Eurasian integration in conditions of global economic volatility, reduction of prices for the main power resources and mutual imposing of economic sanctions between Russia and European countries opens new possibilities for closer economic cooperation of all Eurasian region countries, including China, European countries and Central Asian countries. And, given its geographical location, Kazakhstan can become a liaison between East and West as an element of Eurasian integration process.
Moreover, given the generation of integrated economic space, the elimination of barriers to Kazakhstan's products' accessing the partner countries' markets is an essential aspect for industrial growth and enhancing the opportunities for small and medium businesses.
So, Kazakhstan’s participation in Eurasian Economic Union is an element of Government’s single economic policy of the Government on economic diversification. Our country is to become an important and competitive player in global economy. Main positive changes are awaiting Kazakhstan in the future in implementation of agreements for common markets development in various sectors.
Thereby, most benefits both to member states and to the entire the continent’s economic development will be brought by Eurasian Economic un ion in the future. Its stage-by-stage development creates a necessary platform for stability and Eurasian integration process attractiveness.
Question: What is the Eurasian integration’s economic potential?
The member countries’ economies` total volume is over USD 2.2 trillion. Total volume of the three countries’ industrial products output makes USD 1.5 trillion. As estimated by Eurasian Economic Commission, the perspective integration effect in terms of joint GDP surplus might amount to USD 900 billion by 2030. GDP surplus for Kazakhstan will amount up to USD 30 billion by 2030.
Foreign direct investments influx from third countries to the Union`s economy might reach USD 85 billion by 2030, according to Eurasian Economic Commission. From this sum, Kazakhstan might get an additional benefit from membership in EEU in the amount of USD 40 billion, the Republic of Belarus - USD 9.6 billion, Russian Federation – USD 35.4 billion
Question: Which factors make Kazakhstan participation necessary in regional economic integration?
There are three main factors.
The first factoris the continent’s being isolated. The country`s geographical location far from sea ports reduces possibilities of access to third countries` markets, which in turn limits economic growth opportunities.
The second factoris the domestic market’s insufficient capabilities of attracting the investments and developing the processing industries, which market’s consumption size is 17 million people.
And the third factor is the global economic growth slowdown trend, the volatility of global markets consuming Kazakhstan’s major export goods (oil and metals).