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February results. Gold lifts economy of Kyrgyzstan up

Economic results of Kyrgyzstan’s development are encouraging for the second month in a row. GDP is growing, as is the industry. But the prices, on the contrary, fell slightly.

GDP continues to grow

According to the National Statistical Committee of Kyrgyzstan, in January-February 2019, Kyrgyzstan’s GDP amounted to 63,09.3 billion soms. This is 4.9 percent more than in the same period of 2018.

In February, the economic growth slowed down a bit. Compared with January, it decreased by 1.5 percent. However, in general, the indicators are quite good due to gold mining at Kumtor. But it is worth noting that the economy is still growing in comparison with February 2017, which was quite prosperous and rich in gold production (3 percent growth).

Excluding enterprises for development of Kumtor mine, the country’s GDP is 56,274.4 billion soms with an increase of 1 percent compared to the same period of 2018.

Return from clothing to mining

Kumtor’s switch to mining of ore rich in gold primarily influenced industrial production indicators. If in 2018 the textile industry was a flagship of the industry, now the mining industry again holds the palm.

According to the results of two months of 2019, the volume of industrial production amounted to 38,050.5 billion soms. This is 12.2 percent more than in 2018.

But indicators in industry are not so bright without Kumtor. The production volume is estimated at 22,434.4 billion soms. This is 5.3 percent less than in 2018.

In January-February 2019, the production of petroleum products (by 50.3 percent), textiles (by 23.4 percent), rubber and plastic products (by 15.1 percent), and food products (by 12.8 percent) decreased, as well as wood processing and production of wood and cork items (by 4.5 percent).

Prices of vegetables, cigarettes and alcohol grow

In February 2019, a general decline of 0.2 percent was registered in consumer prices and tariffs in the republic.

Prices for non-food products decreased by 0.4 percent, food and non-alcoholic beverages — by 0.3 percent and services — by 0.1 percent. But the prices for alcoholic beverages and tobacco products increased by 0.7 percent.

In February, an increase in consumer prices and tariffs was observed in Issyk-Kul (by 0.1 percent), Naryn (by 0.2 percent), Chui (by 0.2 percent) and Talas (by 0.4 percent) regions.

Since the beginning of 2019, the inflation rate in the consumer sector was 0.2 percent.

Prices for food products and non-alcoholic beverages have increased by 0.3 percent since the beginning of the year, for alcoholic beverages and tobacco products — by 3.3 percent. But the cost of non-food products decreased by 0.5 percent, services — by 0.4 percent.

In February, an increase in consumer prices and tariffs was observed throughout Kyrgyzstan except for Osh region and Osh city, where a slight decrease was recorded.

The maximum price increase (0.7 percent) was registered in Naryn region. Since the beginning of the year, alcoholic beverages and tobacco products rose in price most of all in Issyk-Kul region (by 4.4 percent), services — in Talas region (by 1.8 percent).

Whose salaries are growing?

According to the National Statistical Committee, an average salary in Kyrgyzstan is 15,327 soms.

Growth in average monthly salaries (excluding small enterprises) was registered at enterprises and organizations engaged in all types of economic activity.

Salaries at enterprises and organizations engaged in professional, scientific and technical activities, as well as other service activities, have decreased.

At the end of 2018, the subsistence minimum in Kyrgyzstan reached 4,792.54 soms, for pensioners — 4,282.99 soms.