Kyrgyzstan Economy Profile 2008

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. GDP grew more than 6% in 2007, partly due to higher gold prices internationally. 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. 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 (purchasing power parity)

$10.38 billion (2007 est.)

GDP (official exchange rate)

$3.488 billion (2007 est.)

GDP - real growth rate

6.5% (2007 est.)

GDP - per capita (PPP)

$2,000 (2007 est.)

GDP - composition by sector

agriculture: 31.7%
industry: 19.8%
services: 48.4% (2007 est.)

Population below poverty line

40% (2004 est.)

Household income or consumption by percentage share

lowest 10%: 3.8%
highest 10%: 24.3% (2003)

Inflation rate (consumer prices)

6.4% (2007 est.)

Investment (gross fixed)

17.2% of GDP (2007 est.)

Labor force

2.7 million (2000)

Labor force - by occupation

agriculture: 55%
industry: 15%
services: 30% (2000 est.)

Unemployment rate

18% (2004 est.)

Distribution of family income - Gini index

30.3 (2003)

Budget

revenues: $684.4 million
expenditures: $764.1 million (2007 est.)

Industries

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

Industrial production growth rate

5% (2007 est.)

Electricity - production

15.15 billion kWh (2005)

Electricity - consumption

8.206 billion kWh (2005)

Electricity - exports

2.684 billion kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

1,965 bbl/day (2005)

Oil - consumption

12,000 bbl/day (2005 est.)

Oil - imports

13,770 bbl/day (2004)

Oil - exports

3,221 bbl/day (2004)

Oil - proved reserves

40 million bbl (1 January 2006 est.)

Natural gas - production

28.77 million cu m (2005 est.)

Natural gas - consumption

709.7 million cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

680.9 million cu m (2005)

Natural gas - proved reserves

5.432 billion cu m (1 January 2006 est.)

Current Account Balance

-$677.3 million (2007 est.)

Agriculture - products

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

Exports

$1.04 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

Switzerland 26.1%, Kazakhstan 20.4%, Russia 19.3%, Afghanistan 9.4%, China 4.8% (2006)

Imports

$2.509 billion f.o.b. (2007 est.)

Imports - commodities

oil and gas, machinery and equipment, chemicals, foodstuffs

Imports - partners

Russia 38.1%, China 14.4%, Kazakhstan 11.7%, US 5.7% (2006)

Reserves of foreign exchange and gold

$1.293 billion (31 December 2007 est.)

Debt - external

$2.966 billion (30 June 2007)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$41.99 million (2005)

Economic aid - recipient

$268.5 million from the US (2005)

Currency (code)

som (KGS)

Exchange rates

soms per US dollar - 37.746 (2007), 40.149 (2006), 41.012 (2005), 42.65 (2004), 43.648 (2003)

Fiscal year

calendar year