According to the results of 2021, Kyrgyzstan’s economy entered a positive growth trajectory, but the ordinary people in the country did not feel it. The skyrocketing prices actually leveled all the economic gains.
GDP began to grow
In January-December 2021, the GDP of Kyrgyzstan amounted to 723,722.2 billion soms.
Economic growth reached 3.6 percent at the end of 2021.
Compared to November, the growth was 1.2 percent. GDP growth was observed in the last four months of the year. It turned out to be exactly as it was forecasted by experts. The situation with Kumtor had a major impact on the modest growth figures. Gold production at the mine began to grow only towards the end of the year, which immediately influenced the economic indicators.
When calculating GDP and its changes compared to the previous year, many factors are taken into account: prices, output by industries, budget revenues, and government spending. Kyrgyzstan is an import-dependent country. This means that the country buys most of its goods in dollars. Therefore, we converted the GDP into U.S. dollars at the official exchange rate at the end of the month.
«GDP growth is mainly provided by the service sector. Its growth was 6.5 percent, while there was a decrease of 9.8 percent last year. A similar trend is observed in industries, where at the end of 2021 there was a growth of 7.2 percent, while in 2020 there was a drop of 7 percent,» the National Statistical Committee said.
Gold saved industry
Situation in the industrial sector is directly dependent on the volume of gold production. Almost all year long the figures were worse than ever, demonstrating a huge drop. Much of it had to do with the situation around Kumtor mine. When gold production at the mine went up, the overall numbers began to rise. By the end of the year, the increase in the sector indicators exceeded the total growth of the republic’s economy almost three times.
Excluding gold production at Kumtor, the industry showed record growth of 15.6 percent.
According to the results of January-December 2021, growth in industrial production reached 9 percent.
The growth in industrial production compared to 2020 is associated with an increase in the production of refined petroleum products (by 67 percent), rubber, plastic products and other non-metallic mineral products (by 29.5 percent), wood and paper products, printing activities (by 26.2 percent).
Production of food (including beverages) and tobacco products increased (by 13.3 percent), as well as production of minerals (by 21.2 percent), production of basic metals and finished metal products, except for machinery and equipment (by 3 percent).
There are also industries that show a decline by the end of the year. For example, the National Statistical Committee recorded a decline in the production of pharmaceutical products (35.8 percent) and chemical products (31.1 percent), textiles, clothing and footwear, leather and leather goods (5.8 percent).
Expensive buckwheat and potatoes
Prices in Kyrgyzstan increased by 11.2 percent for the year. Prices of alcoholic beverages and tobacco products grew by 11.4 percent, food and soft drinks — by 13.3 percent, non-food products — by 9.7 percent, tariffs for services provided to population — by 7.1 percent and confectionery products — by 10.5 percent.
Increase in consumer prices and tariffs in January-December 2021 (compared to December 2020) was observed in all regions of the republic. The maximum increase in prices (14.9 percent) was registered in Jalal-Abad region. Prices for non-food products went up there more than in other regions (by 20.1 percent).
In December 2021, compared to November, there was increase in consumer prices and tariffs by 1.3 percent in the republic as a whole.
This was due to an increase in prices for food and non-alcoholic beverages — by 2.1 percent, services provided to the population — by 1.9 percent, alcoholic beverages and tobacco products — by 0.5 percent. At the same time, there was a decrease in prices (by 0.2 percent) for non-food products.
Prices for unpasteurized bottled milk (by 18.5 percent), vegetables (by 7.6 percent), long-grain rice (by 3.3 percent), bread (by 3.1 percent), fish (by 2.8 percent), eggs (by 2.5 percent), granulated sugar (by 1.9 percent) and flour (by 1.6 percent) rose the most in December 2021.
Wages keep on rising
According to the National Statistical Committee, the average wage in Kyrgyzstan is 19,661 soms.
In contrast to 2020 it increased at enterprises and organizations engaged in all types of economic activity.
At the end of 2021 the minimum wage in the country amounted to 6,518.03 soms, for pensioners — 5,807.53 soms.
What and who Kyrgyzstan trades with
According to November results, foreign trade turnover of Kyrgyzstan amounted to $6,278.2 billion, which is 21.4 percent higher than in 2020, exports — $1,449.4 billion (drop of 20,1 percent), imports — $4,828.8 billion (growth of 43.9 percent).
Volume of trade of Kyrgyzstan with the EAEU states reached $2,352.2 billion.
