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February results: textile - flagship industry of Kyrgyzstan’s economy

The National Statistical Committee of Kyrgyzstan summed up the results of the social and economic development of the Kyrgyz economy in February 2018. Stable growth continues, but not at the expense of the mining industry.

GDP is growing steadily

According to the results of January-February, the Kyrgyzstan’s GDP amounted to 59,027.4 billion soms. This is 2.7 percent more than in the same period of 2017.

The Head of the Department of Economic Statistics and the National Accounts of the National Statistical Committee Elvira Isenkulova stressed that the dynamics was characterized by an increase in key indicators. The growth in the production of goods and services influenced the GDP.

The service sector still accounts for the main share in the structure of the gross domestic product — 48 percent. The share of industry was 24 percent, agriculture — 8, construction — about 4 percent.

Switch from mining to textile

In the first two months of 2018, the industrial sector demonstrated good results. In January-February, it produced goods for 35,965 billion soms. Compared with the last year, the indicator grew by 5.4 percent.

In 2017, the industry grew mainly due to record volumes of ore extraction and processing. This year, the situation has changed: light industry and textile production show good results.

At the same time, the volume of production of machinery and equipment (by 32.8 percent), vehicles (by 28.5 percent), basic metals and finished metal products (by 2.6 percent) decreased.

Prices are growing!

Positive economic growth rate contributes to inflation. Prices continue to grow in Kyrgyzstan. So, in February, the growth in consumer prices and tariffs in the republic amounted to 0.9 percent. Services (3.4 percent), alcoholic beverages and tobacco products (1.1 percent) grew in price most of all.

In addition, prices for food and non-alcoholic beverages increased (by 0.4 percent). A slight decrease in prices (0.1 percent) was registered only for non-food products.

In February, prices rose everywhere, except for Batken region, where they remained at January level. The maximum price increase (1.6 percent) was recorded in Naryn region.

The maximum (3.3 percent) growth in consumer prices and tariffs in January-February was recorded in Naryn region. At the same time, a decrease in prices (by 0.8 percent) was traced in Batken region.

Alcoholic beverages and tobacco products went up most in Talas region (by 8 percent), non-food products — in Osh region (by 1.2 percent).

An average salary in Kyrgyzstan in January was 14,629 soms.

Compared to the same period in 2017, the indicator grew by 6.3 percent. The National Statistical Committee noted that the most significant increase in the average monthly salary was recorded in construction, servicing, professional, scientific and technical activities.

We sell gold, dried fruits and cotton

In January, the volume of foreign trade turnover of Kyrgyzstan reached $ 488.6 million. Export amounted to $ 107 million, imports — $ 381.6 million. Countries of the Eurasian Economic Union continue to account for the main share in the foreign trade.

The volume of trade with EEU countries in January increased by 14.3 percent and amounted to $ 143.2 million. Export ($ 32.9 million) decreased by 14.4 percent, and imports ($ 110.3 million) grew by 27.1 percent.

Russia (65.9 percent) and Kazakhstan (32.4 percent) account for the largest share in the republic’s mutual trade with EEU countries. Export of cotton fiber, lamas and dried fruits to Russia grew along with import of poultry, sunflower oil, confectionery and rolled metal products.

As for the export of goods to Kazakhstan, the volume of household electric heaters and plastic containers increased 1.5 times. Volumes of import of sunflower oil, wheat flour, cosmetics and water from Kazakhstan have grown.