Kyrgyzstan's GDP increases by 3.5 pct in 2018
By Abdul Kerimkhanov
Kyrgyzstan's GDP in 2018 grew by 3.5 percent and amounted to 557 billion soms ($8 billion), said Chairman of the Kyrgyz National Statistical Committee Akylbek Sultanov during a press conference on January 16.
“Following the results of 2018, a positive trend is observed in the economy of Kyrgyzstan. For example, last year's GDP, according to preliminary estimates, amounted to 557 billion soms. Compared with 2017, the growth was 3.5 percent,” he stressed.
Industrial output made about 251 billion soms ($3.6 billion) and increased by 5.4 percent compared with 2017 due to an increase in coal production by 22 percent, crude oil and natural gas by 15.5 percent, and also due to growth in the production of petroleum metals, textile production of clothing, food, etc.
“Positive trends were recorded in agriculture, where volume growth amounted to 2.7 percent. The growth is mainly due to the increase in crop production by 3.4 percent, livestock by 2.2 percent. Retail and wholesale trade grew by 5.5 percent and the construction sector grew by 7.8 percent. All this served the growth of the economy in 2018,” reported Sultanov.
The economy of Kyrgyzstan is developing dynamically, therefore, it is very promising and attractive for foreign capital and business.
The main sectors of the Kyrgyz economy are agriculture, industry, construction, trade, services, tourism, transport and communications.
Kyrgyzstan can be characterized more as an agrarian country since more than half of the population is employed in this sector. Despite the decline in the global economy, agriculture continues to develop dynamically.
The bulk of agricultural production (about 95 percent) is accounted for by private farms. The most significant branches of agricultural production are livestock (livestock, poultry, pig), and cotton, fruits, vegetables, cereals, nuts, berries.
The largest industries in Kyrgyzstan are electric power and mining. The electric power industry of Kyrgyzstan was as an industry formed in Soviet times.
There are 17 hydropower stations operating in the country, the most powerful is the cascade of stations along the Naryn River. However, despite the fact that Kyrgyzstan exports electricity, there is some deficit in the country itself.
There are rich deposits of rare metals in the country - mercury, tungsten, tin, there are also large reserves of gold, and therefore the cost of jewellery in this country is low. It gives rise to the constant demand for these products from both locals and tourists. The country also has reserves of coal, oil and gas.
The processing industry is represented by light, textile and food industry.
The main foreign trade partners of Kyrgyzstan are Russia and Kazakhstan. They account for more than a third of the total foreign trade turnover.
The forecasts of independent foreign analysts about Kyrgyz economy development are very favorable. The economy of this country has great potential for growth and development. The government, by all means, creates a favorable investment climate in Kyrgyzstan, which contributes to the inflow of foreign capital into the country, so even in times of crisis, Kyrgyzstan manages to maintain a fairly high GDP growth rate.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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