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Results of 2019. Economy of Kyrgyzstan continues to depend on gold

The National Statistical Committee of Kyrgyzstan presented preliminary results of economic development of Kyrgyzstan in 2019. The results turned out to be slightly higher than experts predicted. However, an economic breakthrough did not happen. Indeed, positive economic growth is the result of large volumes of gold mining at Kumtor.

Modest GDP growth

Experts predicted that the Kyrgyz economy would grow by about 4 percent in 2019. In fact, the indicators were slightly higher.

As a result of 2019, the country’s GDP amounted to 590,042.4 billion soms. The growth achieved in 2019 was provided by the commodity production (by 6.4 percent) and services sectors (by 2.9 percent).

At the end of 2019, Kyrgyzstan’s GDP grew by 4.5 percent.

But if we look at the growth of the economy at the beginning and the end of the year, the situation is not so rosy. 2019 began with a GDP growth of 6.4 percent. This means that the indicator slowed down by 1.9 percent over the year.

«The observed slowdown in economic activity is largely due to a decrease in gold production at Kumtor mine. Construction industry continues to play the role of a key driver,» Aigul Berdigulova, an Analyst at the Eurasian Development Bank’s Economic Analysis Department, had previously warned.

Without gold, GDP rate amounted to 543,322.8 billion soms at the end of 2019. If, according to results of January 2019, the indicator was only 1.9 percent, then by the end of the year it grew to 3.8 percent.

The basis of industry is mining

The results of the year turned out to be positive for the industrial sector of the republic. In January — December 2019, Kyrgyzstan produced industrial products for 278,565 billion soms. This is 5.8 percent more than in 2018.

The growth is associated with gold mining. If textiles accounted for the bulk of industrial growth in 2018, then in 2019 the palm was handed over to mining.

According to the National Statistical Committee, the growth in industrial production is due to an increase in the production of metal ores (by 28.5 percent), clothing (by 18.3 percent), and production of crude oil and gas (by 17 percent). Production of base metals increased (by 12.3 percent), as well as of other non-metallic mineral products (by 8.8 percent), food products (by 4.3 percent) and coal mining (by 6.9 percent).

At the same time, production of oil products (by 40 percent), chemical products (by 3.8 percent), rubber and plastic products (by 3 percent), and pharmaceutical products (by 2.2 percent) decreased.

Without enterprises for development of Kumtor mine, the volume of production amounted to 149,397.2 billion soms and grew, compared to 2019, by only 2 percent.

Vegetables and milk rise in price

In December 2019, compared with November, consumer prices and tariffs in the country increased by 0.9 percent. The largest growth (1.6 percent) was recorded for food products and soft drinks.

Prices rose most of all in Bishkek (1.1 percent). Food and non-alcoholic beverages grew in price significantly in the capital — by 1.9 percent, as well as non-food products — by 1.1 percent.

In 2019, prices, according to the National Statistical Committee, increased by 3.1 percent. Tobacco products (13.4 percent), food and non-alcoholic beverages (5.7 percent) grew in price most of all. Alcohol prices, on the contrary, fell by 0.6 percent.

In 2019, price increases were registered throughout the country. Most of all, they grew in Batken region (6.3 percent), and less of all — in Osh (by 2.3 percent).

Salaries grow in construction sector

According to the National Statistical Committee, an average salary in Kyrgyzstan at the end of 2019 amounted to 16,586 soms.

At the same time, an increase in the average monthly accrued wages was observed at enterprises and organizations of all types of economic activity, with the exception of information and communications, transportation and storage of goods.

The most significant increase in average monthly wages was observed in construction, professional, scientific and technical activities, in the field of hotels and restaurants. In addition, salaries grew at the mining, water supply, purification, waste treatment, production of secondary raw materials and real estate operations’ enterprises.

As a result of 2019, the subsistence minimum in Kyrgyzstan amounted to 4,806.32 soms, for pensioners — 4,286.71 soms.

What and with whom Kyrgyzstan trades

According to the results of January — November 2019, the foreign trade turnover of Kyrgyzstan amounted to $ 6,218.8 billion that is 2.6 percent less than in 2018. Exports amounted to $ 1,737.9 billion (an increase of 9.4 percent), and imports — $ 4,480.9 billion (a decrease of 6.6 percent).

Most of all the republic has traded with the EAEU countries — $ 2,402 billion.