Kyrgyzstan Economy Profile 2009

Economy - overview

Kyrgyzstan is a poor, mountainous country with a predominantly agricultural economy. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. Industrial exports include gold, mercury, uranium, natural gas, and electricity. Following independence, Kyrgyzstan was progressive in carrying out market reforms such as an improved regulatory system and land reform. Kyrgyzstan was the first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization. Much of the government's stock in enterprises has been sold. Drops in production had been severe after the breakup of the Soviet Union in December 1991, but by mid-1995, production began to recover and exports began to increase. The economy is heavily weighted toward gold export and a drop in output at the main Kumtor gold mine sparked a 0.5% decline in GDP in 2002 and a 0.6% decline in 2005. The government made steady strides in controlling its substantial fiscal deficit, nearly closing the gap between revenues and expenditures in 2006, before boosting expenditures more than 20% in 2007-08. The government and international financial institutions have been engaged in a comprehensive medium-term poverty reduction and economic growth strategy. In 2005, Bishkek agreed to pursue much-needed tax reform and, in 2006, became eligible for the heavily indebted poor countries (HIPC) initiative. Progress fighting corruption, further restructuring of domestic industry, and success in attracting foreign investment are keys to future growth. GDP grew more than 6% annually in 2007-08, partly due to higher gold prices internationally, but growth is likely to decline from that level in 2009, due to declining demand and lower commodity prices in the wake of the international financial crisis.

GDP (purchasing power parity)

$11.61 billion (2008 est.)
$10.8 billion (2007 est.)
$9.947 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$5.049 billion (2008 est.)

GDP - real growth rate

7.6% (2008 est.)
8.5% (2007 est.)
3.1% (2006 est.)

GDP - per capita (PPP)

$2,200 (2008 est.)
$2,000 (2007 est.)
$1,900 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 29.8%
industry: 19.7%
services: 50.6% (2008 est.)

Population below poverty line

40% (2004 est.)

Labor force

2.344 million (2007)

Labor force - by occupation

agriculture: 48%
industry: 12.5%
services: 39.5% (2005 est.)

Unemployment rate

18% (2004 est.)

Household income or consumption by percentage share

lowest 10%: 3.6%
highest 10%: 25.9% (2004)

Distribution of family income - Gini index

30.3 (2003)
29 (2001)

Investment (gross fixed)

23.2% of GDP (2008 est.)

Budget

revenues: $1.274 billion
expenditures: $1.231 billion (2008 est.)

Inflation rate (consumer prices)

24.5% (2008 est.)
10.2% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
25.32% (31 December 2007)

Stock of money

$NA (31 December 2008)
$911.1 million (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$303.7 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$558.3 million (31 December 2007)

Industries

small machinery, textiles, food processing, cement, shoes, sawn logs, refrigerators, furniture, electric motors, gold, rare earth metals

Industrial production growth rate

10.7% (2008 est.)

Electricity - production

15.62 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 7.6%
hydro: 92.4%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

8.997 billion kWh (2006 est.)

Electricity - exports

2.387 billion kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

965 bbl/day (2007 est.)

Oil - consumption

12,330 bbl/day (2006 est.)

Oil - imports

14,240 bbl/day (2005)

Oil - exports

2,534 bbl/day (2005)

Oil - proved reserves

40 million bbl (1 January 2008 est.)

Natural gas - production

18 million cu m (2007 est.)

Natural gas - consumption

768 million cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

750 million cu m (2007 est.)

Natural gas - proved reserves

5.663 billion cu m (1 January 2008 est.)

Current Account Balance

-$708 million (2008 est.)
-$267.9 million (2007 est.)

Agriculture - products

tobacco, cotton, potatoes, vegetables, grapes, fruits and berries; sheep, goats, cattle, wool

Exports

$1.847 billion (2008 est.)
$1.337 billion (2007 est.)

Exports - commodities

cotton, wool, meat, tobacco; gold, mercury, uranium, natural gas, hydropower; machinery; shoes

Exports - partners

Russia 29.4%, Switzerland 16.2%, Kazakhstan 15.1%, Afghanistan 12.3%, China 7.6%, Uzbekistan 5.8% (2008)

Imports

$3.754 billion (2008 est.)
$2.636 billion (2007 est.)

Imports - commodities

oil and gas, machinery and equipment, chemicals, foodstuffs

Imports - partners

China 70.5%, Russia 13.9%, Kazakhstan 3.4% (2008)

Reserves of foreign exchange and gold

$1.225 billion (31 December 2008 est.)
$1.177 billion (31 December 2007 est.)

Debt - external

$3.467 billion (31 December 2008)
$3.162 billion (31 December 2007)

Stock of direct foreign investment - at home

$16.5 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA (31 December 2008)
$121 million (31 December 2007)
$92.69 million (31 December 2006)

Economic aid - recipient

$268.5 million from the US (2005)

Currency (code)

som (KGS)

Currency (code)

KGS

Exchange rates

soms (KGS) per US dollar - 36.108 (2008 est.), 37.746 (2007), 40.149 (2006), 41.012 (2005), 42.65 (2004)

Fiscal year

calendar year