After three years of continuing GDP decline, from a low of –12.6% in 1994, moderate growth of 0.5% was observed in 1996. 1997 therefore represented the second consecutive year of positive GDP growth (2%). A cautious government forecast for 1998 predicts GDP growth of about 3%. The long-term government projections for the period to 2030 aim to achieve GDP growth of over 10% in the next 10-15 years.

The package of anti-inflationary measures introduced in response to post-independence hyperinflation, which in 1994 reached 1,158%, included tough monetary and budget policies. After four years of consistent macroeconomic policies aimed to reduce inflation to moderate levels, the National Bank of Kazakhstan and the Ministry of Finance achieved a record end-of-year low of 11.2% in 1997. Official 1998 projections indicate a one-digit figure (which has a significant psychological effect) of 9.5%.

Kazakhstan observed the most dramatic fall of the Tenge against US Dollar in 1994, as a result of excessive cheap credits to the economy. Since that time, the National Bank of Kazakhstan has implemented a tough exchange rate policy, which has resulted in a stable exchange rate of the national currency.

Kazakhstan has the highest ratio of foreign direct investment in the CIS. As of end 1997, the net inflow of foreign direct investment into the national economy was in excess of $1,700 billion. The main recipient sectors have been oil, gas and metals.