Industrial output decline forecasted for 2018 in Kyrgyzstan

In 2018, a decline in industry is forecasted due to a decrease in gold production at Kumtor. This was announced today at the public hearings on the draft budget 2018 by the Minister of Economics Artem Novikov.

According to him, in 2018 GDP is expected to grow by 3.6 percent. Without taking into account the enterprises developing the Kumtor mine, the indicator will be 3.8 percent. At the same time, the growth in the agrarian sector will be at the level of 3.2 percent, but the industry is to fall by 0.4 percent.

«This is due to a decrease in production at Kumtor mine. This will give a negative effect. But there will be an increase in production at Bozymchak and other fields. Growth in the production of petroleum products and textiles is expected. It is planned to create subsidized zones for some enterprises, programs for preferential lending. Joint ventures with Uzbekistan on assembly of buses and agricultural machinery will be implemented. Without Kumtor, industry is expected to grow by 9.4 percent,» he said.

In 2018, a construction boom is expected. The growth in the sector is expected at 10.5 percent. The increase in capital investments is expected to reach 11 percent, which will ensure the growth of funds coming from migrants.