The announcement by US Secretary of State Antony Blinken during his visit to Astana about strengthening strategic cooperation with Kazakhstan and other Central Asian countries is likely to have a significant impact on the economies of the region.
United States has been one of the largest investors in Kazakhstan’s economy since 1991, with investments exceeding $50 billion. The US is likely to continue investing in Kazakhstan’s economy, as Blinken emphasized that US businessmen were among the first to invest in Kazakhstan.
Economic boost
The US direct investment in Kazakhstan exceeds $62 billion, and in the first three quarters of 2022, the inflow of US investments increased by 58.8% compared to the first three quarters of 2021. This increased investment is likely to boost economic growth and job creation in Kazakhstan and neighboring countries.
The Economic Resilience Initiative of Central Asian countries, which the US has allocated an additional $25 million to, will help the countries of Central Asia mitigate the consequences of Russian aggression in Ukraine, gaining new cooperation partners and promoting the diversification of the economies. This initiative will promote economic development in the region, creating new export markets and attracting private sector investments.
Mutual trades
The mutual trade turnover between Kazakhstan and the USA exceeded $3 billion in 2022, an increase of 37.2% compared to 2021. This increase in trade is likely to have a positive impact on the economies of both countries.
There are already about 590 companies with US capital in Kazakhstan, and there is a growing interest in the Kazakh market, indicating that the US is likely to continue investing in Kazakhstan’s economy.
The establishment of a consultation mechanism between Kazakhstan and the US to avoid negative consequences for Kazakhstan’s economy and prevent possible secondary sanctions is likely to promote a stable business environment in Kazakhstan and encourage further investment in the country.
The strengthening of strategic cooperation between the US and Kazakhstan and other Central Asian countries is likely to have a positive impact on the economies of the region.
Increased investment, economic development, and trade are likely to boost economic growth and create job opportunities in Kazakhstan and neighboring countries.
