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April results. Economy of Kyrgyzstan stands still without gold

The National Statistical Committee presented the results of social economic development of Kyrgyzstan in April 2019. The economy of the country, taking into account the production of gold, is growing quite well, but it practically stands still without it.

Prices in the republic have generally slightly decreased, the National Statistical Committee stressed.

Nowhere without gold

According to the results of January-April of this year, Kyrgyzstan’s GDP amounted to 149,622.6 billion soms. Compared with 2018, it grew by 5.6 percent.

The figures are not bad, but April did not reach 6.4 percent growth of January. On the contrary, unlike in the first month of the year, GDP growth slowed down by 0.7 percent.

Compared with March 2019, the economy grew by 0.4 percent.

The data is quite logical. Kumtor is processing ore that is rich in gold. And this immediately affects the GDP growth data. Last year situation was different. Due to a decline in production in the mining sector, the GDP growth was not encouraging. The situation leveled off by the end of the year only.

Therefore, we should not cheer about a good growth in the first half of this year. This is only the effect of the low base of 2018. The results of GDP growth in the third and fourth quarters of the year will be indicative.

Today, the growth rates of the economy, excluding enterprises developing Kumtor mine, are more representative. Last year, the rates were stable and high. Therefore, a comparison with 2019 data clearly shows that there is practically no economic growth.

Thus, in the first four months of this year, the country’s GDP without Kumtor amounted to 133,336.1 billion soms. Compared with 2018, it grew by only 1.6 percent.

Basis of industry — mining

If last year garment and textile industry provided growth of the industry, then this year all hope is for the mining sector. It is interesting, that the rates of mining and processing of not only precious metals, but also other minerals are also growing.

In January — April 2019, industrial production in the republic amounted to 84,106.8 billion soms. This is 6 percent more than in 2018.

In addition, there was an increase in textile and clothing production (by 21.2 percent), as well as rubber and plastic products (by 7 percent).

At the same time, the production of petroleum products (by 36.7 percent), chemical (by 37.7 percent) and pharmaceutical products (by 18.2 percent), food products (by 4.8 percent) decreased.

Without taking into account enterprises for development of Kumtor, industrial output amounted to 44,200.4 billion soms and decreased by 5.9 percent.

Cigarettes and alcohol grow in price

In April, prices and tariffs in Kyrgyzstan as a whole decreased by 0.4 percent. Non-food products fell in price by 1 percent, food and non-alcoholic beverages — by 0.3 percent. But the tariffs for services rendered to the population increased by 0.1 percent, the prices of alcoholic beverages and tobacco products — by 0.2 percent.

In April, prices and tariffs fell across the country, except for Issyk-Kul region, where they increased by 0.4 percent.

Since the beginning of the year (compared to December 2018), the decline in prices and tariffs in the republic as a whole was 0.4 percent.

The maximum (0.6 percent) increase in consumer prices and tariffs in January-April was recorded in Naryn region, which was mainly due to their significant increase in comparison with other regions for food and non-alcoholic beverages (1.8 percent). The maximum decrease in consumer prices and tariffs (by 0.8 percent) was registered in Osh.

Where do salaries grow?

According to the National Statistical Committee, an average salary in Kyrgyzstan reached 15,716 soms.

An increase in the average monthly wage was observed at enterprises and organizations of all types of economic activity, with the exception of enterprises and organizations dealing with transport and storage of goods, as well as hotels and restaurants.

In the first quarter of 2019, the subsistence minimum in the country amounted to 4,681.31 soms, for pensioners — 4,168.37 soms.