Kyrgyz economy demonstrates GDP growth

/By AzerNews/

By Vusala Abbasova

Kyrgyzstan's economy has demonstrated steady growth pace in January to May, 2015.

The GDP amounted to 140 billion soms (approximately $2.36 billion) in the first five months of this year, which is up by 6.9 percent compared to last year.

Inflation ratio rose by 1.2 percent in the country, according to head of the statistical information in National Statistical Committee Chinar Turdubaeva.

The increase in GDP was ensured through the development of service, industry and agriculture sectors.

The service sector had the largest contribution to the GDP, holding over 51 percent of overall figure. The industry and agriculture sectors held 20 and 9 percent respectively, while the building sector amounted to 6 percent.

Turdubaeva noted that the industrial production increased by 21.5 percent to 76 billion soms ($1.29 billion) in this period.

In this regard, she stressed the important role of the Kumtor gold mine, operated by a Toronto-based company.

The gold ore production increased by 21.5 percent to 38.4 billion soms (approximately $0.65 billion) in January to May, 2015 as compared to 2014.

The gold mine industry could rise due to expansion of precious metals production.

There was fixed a decline in some industry spheres such as textile industry, manufacture of clothing and footwear leather and other leather products, which saw a 41.5 percent drop in production. Electrical equipment industry decrease by 20 percent, electricity by 11.7 percent, manufacture of food, and beverages and tobacco products by 6.1 percent.

The construction industry improved its indices by 2.2 times in his period due to investments into agriculture, forestry and fisheries facilities.

The EBRD has already allocated over 570 million euros to finance 120 projects in various sectors of the economy in Kyrgyzstan since the beginning of cooperation in 1992.

GDP growth in the Kyrgyz Republic is expected to decline to 3.0 percent in 2015 from 3.6 percent in 2014, according to the EBRD. The slowdown reflects sharply lower remittances from Russia and more difficult export environment due to recession, depreciation of the Russian rouble and sharply slower growth in Kazakhstan, the country’s main trading partner and a source of remittances.

Kumtor gold mine is the largest gold mine in Central Asia, having produced more than 9.9 million ounces of gold between 1997 and the end of 2014. Last year, Kumtor’s gold production was 567,693 ounces.