After a two-month decline, the economy of Kyrgyzstan began to grow due to an increase in gold production at Kumtor. And the prices, on the contrary, continue to fall.
More gold, more growth
In January-September 2018, the republic’s GDP amounted to 368,352.4 billion soms. This is 1.2 percent more than in 2017. At the same time, the figure increased by 58 billion soms for a month.
Service industry accounts for the largest share in the structure of GDP — more than 45 percent. The share of industry is about 19 percent, agriculture — 13.5 percent, construction — about 7 percent.
Production volumes are growing at the country’s largest gold mining enterprise — Kumtor mine. The enterprise began to process richer gold ore that immediately influenced the GDP indicators.
Recall, the Minister of Economy at the end of August predicted the leveling of the situation at the beginning of autumn.
«We expect that September will be the last month of the fall of the economy. Growth will begin in the next month. This is due to the work of Kumtor. An increase in gold mining and production will begin in the fourth quarter of 2018,» Oleg Pankratov forecasted.
His assumptions justified even a little earlier.
Precious metals replaced fuel and lubricants
Despite an improvement in overall indicators of economic growth, industry in Kyrgyzstan cannot boast of rapid growth. According to the results of September, the volume of production in Kyrgyzstan is estimated at 167.9 billion soms. This is 4.7 percent less than last year.
Excluding enterprises for the development of Kumtor mine, the country produced industrial products for 107.6 billion soms. This is 1.6 percent more than in 2017.
This year, light industry is growing steadily. The production of textiles and clothing is increasing.
In addition, by the end of September, the production of rubber and plastic products, as well as construction materials, increased (by 15.8 percent).
Cereals, vegetables and milk become cheaper
GDP growth has not entailed inflation so far. On the contrary, prices continue to drop in Kyrgyzstan. And if in September they fell by 1.1 percent, then for 9 months, food products and soft drinks fell in price by 5.3 percent, non-food products — by 0.5 percent.
Increase in prices and tariffs in September 2018 compared with December 2017 was recorded in Naryn (by 1.4 percent) and Osh (0.3 percent) regions. Alcoholic beverages and tobacco products rose in price the most in Talas region — by 9.8 percent.
According to the National Statistical Committee, the average salary in Kyrgyzstan is 15,793 soms. Compared to last year, it increased by 6.78 percent.
Wages have been rising for the second month in a row in all areas, except for the hotel and restaurant sector. Wages in the sector fell by 9.4 percent.
Earnings in public administration, defense and compulsory social security also increased (by 12.4 percent). Wages at enterprises and organizations of wholesale and retail trade, repair of cars and motorcycles (9.8 percent), real estate operations (9 percent), professional, scientific and technical activities (8.9 percent) are increased a little bit slower.
At least 68,500 unemployed were registered in the country that is 9.1 percent more than last year.