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Profit of enterprises decreases 2.3 times in 2020 in Kyrgyzstan

Profit of enterprises of the republic decreased 2.3 times in 2020. The National Statistical Committee of Kyrgyzstan provided such data.

Activities of enterprises in the past year were characterized by an increase in the number of operating companies, positive growth rates of gross income, a positive balanced financial result (profit) at the end of the year, strengthening of the material base. But at the same time, there was a decrease in the number of profitable enterprises, the smallest volume of netted profit in the last five years and the largest losses from non-operating activities.

The upward trend in mutual non-payments continued, along with an increase in enterprises’ bank loans and borrowings debts.

«Introduction of quarantine and restrictive measures in the republic in connection with the COVID-19 pandemic influenced formation of negative trends in many ways. The most affected enterprises were trade, hotel and restaurant business, transport, tourism, art, recreation and entertainment, as well as the provision of other services, which is due to the full or partial suspension of their activities during the quarantine period, and in the future, the need to comply with restrictive social distancing measures,» the National Statistical Committee said.

The results of the tense internal political situation in the second half of 2020 had a negative impact on the performance of mining and exploration enterprises. Due to the decline in the value of the national currency, deterioration of the financial situation was observed at enterprises with a high debt burden, denominated in foreign currency.

More than 22,000 enterprises and organizations carried out financial and economic activities in the economy of the republic in 2020. Their volume of proceeds from the sale of products (goods, works and services) amounted to about 548 billion soms. Its main share (90 percent of the total) is formed by enterprises in the real sector of the economy, and about 10 percent — by organizations in the financial sector.

«The balanced financial result of enterprises of the economy at the end of 2020 amounted to about 25 billion soms in profit, which is 2.3 times less than the volume of profit in 2019. The largest amount of profit was received by organizations in the financial sector — 14 billion soms, or 57 percent of the total. The share of enterprises in the non-financial (real) sector of the economy accounted for 43 percent of the total profit, or about 11 billion soms. The share of profitable enterprises reached the level of 31 percent, and the share of unprofitable ones amounted to 21.5 percent of the total number of operating companies,» the statement says.