The main driver behind Kazakhstan's economic growth has been foreign investment, mainly in the country's booming oil and natural gas industries. In addition, Kazakhstan boasts significant agricultural potential for both grain and livestock production and U.S. companies are well positioned to help Kazakhstan diversify across this segment of the economy. Kazakhstan’s failure to diversify its economy away from the oil & gas industry means the road to economic recovery will largely depend on a recovery in the price of oil. In addition to oil, its main export commodities include ferrous metals, copper, aluminum, zinc and uranium. Since independence from Soviet rule in 1991, Kazakhstan has received more than 30 bln. It counts Italy, China, Netherlands, Russia and France as its main export destinations. Foreign Safeguard Activity Involving U.S. Exports, Kazakhstan - Using an Agent or Distributor, Kazakhstan - Selling Factors and Techniques, Kazakhstan - Trade Promotion and Advertising, Kazakhstan - Sales Service/Customer Support, Kazakhstan - Import Requirements and Documentation, Kazakhstan - Labeling/Marking Requirements, Kazakhstan - Investment Climate Statement, Kazakhstan - U.S. Banks and Local Correspondent Banks. Its GDP based on PPP was ranked 43rd globally. The economic downturn of its EAEU partner, Russia, and the decline in global commodity prices from 2014 to 2016 contributed to an economic slowdown in Kazakhstan. The COVID-19 pandemic, however, has given Kazakhstan the biggest shock to its economy in almost two decades and is already having a highly negative impact on growth. Kazakhstan is the second-largest republic of the former Soviet Union, after Russia, and the ninth-largest country in the world in territory. The main U.S. exports to Kazakhstan in 2019 were heavy machinery (29%), aerospace equipment (26%) and electrical machinery (6%).Kazakhstan’s economy was in a relatively favorable position prior to the COVID-19 pandemic, with low unemployment (4.9%), with real GDP rising (4.1%) and relatively low public debt. The economy of Kazakhstan is the largest one in Central Asia and is supported by enormous oil reserves, minerals, and metals. The government of Kazakhstan realizes the need to implement transformative economic reforms to boost productivity and growth. The country’s inflation rate is 5.2% while the percentage of the population below the poverty line was 2.9% in 2013. The main imports from Kazakhstan in 2019 were mineral fuel, oil (63%), iron and steel (13%) and inorganic chemicals (11%). In 2019, the World Bank had put its forecast for Kazakhstan’s economy to grow by 3.7% in 2020. The COVID-19 pandemic, however, has given Kazakhstan the biggest shock to its economy in almost two decades and is already having a highly negative impact on growth. The partnership between Kazakhstan and the World Bank Group (WBG) is outlined in the Country Partnership Framework (CPF), developed in consultation with counterparts and civil society to guide a new investment program and quality technical assistance to the Government for 2020–25.. The country has experienced a contracting GDP and budgetary deficits on account of the problem. Relations with Russia will be of primary importance, but Kazakhstan will resist deeper integration and strengthen ties with China and the West. In 2015 the country ranked 13 out of 30 in Global Retail Development Index. However, structural challenges may constrain the government’s ability to respond to the crisis. China has failed to deliver investment on the scale that some imagined but its involvement in the region is significant. Kassym-Jomart Tokayev won the snap presidential election in June 2019, but the former president, Nursultan Nazarbayev, will remain a dominant force in politics. In 2020 we forecast that real GDP will contract by 2.2% (the first full-year recession since 1998) amid a slump in domestic demand and a subdued global oil market environment. The country’s industrial sector is reliant on the extraction and manufacture of the minerals and also the production of heavy machinery. Inexpensive Russian and Chinese goods flow across Kazakhstan’s borders, but Western goods and expertise are also in demand. This would be down from the slightly over 4% Kazakhstan logged in 2019. Kazakhstan is the second-largest republic of the former Soviet Union, after Russia, and the ninth-largest country in the world in territory. However, the country still lags in transparency and other metrics critical to  investors, ranking a mere 113 out of 180 countries in Transparency International’s (TI) 2019 Corruption Perception Index. It is ranked 41st concerning ease of doing business globally. The heavy reliance by the country on the revenue from oil and oil products has at times negatively impacted its economic growth. Originally scheduled for 2020, seven candidates were registered to participate in the elections, including incumbent president Kassym-Jomart Tokayev, who had assumed the presidency three months before the elections following the resignation of Nazarbayev. The main imports from Kazakhstan in 2019 were mineral fuel, oil (63%), iron and steel (13%) and inorganic chemicals (11%). The Country Partnership Framework for 2020–25. According to KPMG’s report on the Impact of COVID-19 on Key Economic Sectors in Kazakhstan, among the most pressing needs are: use of e-platforms to deliver key public services (including remote education to rural areas); online trade solutions; cargo transportation; development of digital products in the financial sector; IT solutions to track productivity of remote work; modernization of telecommunications networks due to high workload; financing and investments in airports and capital-intensive projects in mining and agriculture among others.Other ConsiderationsThe government of Kazakhstan has endeavored to reform the investment climate, an effort that has succeeded in transforming some of the regulatory landscape, but much work remains. The COVID-19 pandemic, however, has given Kazakhstan the biggest shock to its economy in almost two decades and is already having a highly negative impact on growth. The AIFC Court and International Arbitration Center (separate and independent from the Republic of Kazakhstan judicial system) provide a common law court system for the resolution of commercial disputes. Kassym-Jomart Tokayev won the snap presidential election in June 2019, but the former president, Nursultan Nazarbayev, will remain a dominant force in politics. The United States account for 1.6% of Kazakh exports. Kazakhstan is also emerging as a major transport and logistics hub in the region,  linking the large and fast-growing markets of China and South Asia to those of Russia and Western Europe by road, rail and a port on the Caspian Sea. The unemployment rate was at 5% in 2015. As the coronavirus crisis cuts industrial activity, Kazakhstan is on course to enter a full-year recession. In addition, Kazakhstan boasts significant agricultural potential for both grain and livestock production and U.S. companies are well positioned to help Kazakhstan diversify across this segment of the economy. Imports from EAEU countries grew by 24.1%. Other export products include coal, wool, grain, and coal. Customer service in Kazakhstan is sometimes lacking; providing customers with after-sales service could give businesses an edge in the market. The country is now meeting its OPEC+ output cuts, but plans to boost oil output in 2021 put it at odds with the bloc. In some cases, consumers are willing to pay more for imported goods and services that offer higher quality and innovation. Relations with Russia will be of primary importance, but Kazakhstan will resist deeper integration and strengthen ties with China and the West. The country also has a landscape that favors considerable agriculture such as livestock keeping and grain production. Weak consumer demand and low oil prices, as well as the protracted pandemic, have exposed significant risks to Kazakhstan’s economic outlook. The government of Kazakhstan realizes the need to implement transformative economic reforms to boost productivity and growth. US$ of foreign direct investment - the highest per capita indicator in the former Eastern Bloc. Central Downtown Astana (Nur-Sultan), the commercial hub of Kazakhstan. Kazakhstan’s overall score increased by 4.2 points over the previous year due to a large increase in the fiscal health score.The country has much to build on: experienced leaders interested in taking Kazakhstan to the next level; an economy with unfulfilled potential that continues to deliver sustained growth, despite its failings; a developing civil society eager to assist in the reform process; and a young, dynamic and educated work force.