Main article: Kyrgyz Republic (Kyrgyzstan)
GDP
2023: GDP growth of 6.2% to $13.42 billion
The gross domestic product of Kyrgyzstan in 2023 exceeded 1.2 trillion soms, which is equivalent to about $13.42 billion as of March 4, 2024. Compared to the previous year, the figure increased by 6.2%, as stated in the report of the National Statistical Committee of the Kyrgyz Republic, published on January 16, 2024.
The study says that GDP growth is provided by the sectors of commodity production, services and taxes on products. The services segment recorded an increase of 6.2%, in the field of commodity production - by 3.6%, in the direction of taxes on products - 12.7%.
The growth in industrial production compared to 2022 was ensured by an increase in the production of rubber, plastic products and building materials (1.7 times), pharmaceutical products (by 34.9%), wooden and paper products, printing activities (by 19.6%), textile products (by 19.2%), chemical products (by 11.8%), refined petroleum products (by 8.9%), food products (including drinks) and tobacco products (by 5.7%).
The share of industries producing goods was 32.3% and decreased by 2.9% on an annualized basis. At the same time, the share of industry amounted to 16%, reducing by 1.1%, and the share of agriculture amounted to 9.7% and decreased by 1.3%.
In 2023, the increase in consumer prices and tariffs in the republic as a whole amounted to 7.3% compared to the previous year. At the same time, prices for non-food products increased by 12.2%, alcoholic beverages and tobacco products - by 11.3%, food products and soft drinks - by 3.4%, tariffs for services provided to the population - by 9.1%. Most of all in 2023, rice prices increased - by 39.9% compared to 2022, fresh fruits - by 23% and confectionery - by 9%.[1]
2022: Up 7 % to $10.5 billion
The gross domestic product (GDP) of Kyrgyzstan in 2022 amounted to 919.4 billion soms ($10.5 billion), which is 7% more than a year earlier. Prime Minister of the Republic Akylbek Japarov named such indicators on March 24, 2023.
According to him, in conditions of economic instability and uncertainty, a number of international institutions previously predicted a fall in GDP Kyrgyzstan - World Bank by 5%, - International Monetary Fund 0.9%). Despite these forecasts, the Kyrgyz economy showed positive dynamics throughout the reporting period.
Japarov noted that without taking into account the enterprises developing the Kumtor gold deposits, the GDP for 2022 amounted to about 864 billion soms ($10.1 billion) and increased by 5.9%.
The largest share in the structure of GDP (45.5%) fell on the industries providing services, the volume of which in 2022 increased by 1.5 percentage points. At the same time, the share of industries producing goods during this period, on the contrary, decreased by 3.5 percentage points and amounted to 38.6%.
At the same time, the share of agriculture in the structure of GDP decreased by 2.6 percentage points, construction - by 0.6 percentage points and industry - by 0.3 percentage points. The volume of industrial products increased by 14% due to an increase in the output of basic metals (by 30%), wooden and paper products, printing activities (29.3%), petroleum products (14.4%), food products (including drinks) and tobacco products (11.2%), in textile production, production of clothing and footwear, leather and leather products (5.9%), in mining (by 8.5%).
At the same time, the National Statistics Committee noted that by the end of 2022, compared with the indicators of a year ago, prices and tariffs in the republic as a whole increased by 13.5%.[2]
2020: Down 8.6%
in GDP Kyrgyzstan 2020, it decreased by a record 8.6% due to the consequences of the coronavirus pandemic COVID-19. This is evidenced by the data of the National Committee of Statistics of the Republic.
The rate of decline in the Kyrgyz economy in 2020 was significantly higher than the forecasts of the government (5.3%) and the Eurasian Development Bank (7.5%).
The gross domestic product of Kyrgyzstan in January-December 2020 amounted to 598 billion soms, and excluding enterprises for the development of the Kumtor field - 530 billion soms.
By the end of 2020, the volume of industrial products exceeded 319 billion soms and decreased by 6.6% compared to the previous year, largely due to a decrease in the production of petroleum products (59.3%), textile, clothing and footwear, leather and leather products (by 21.5%), wooden and paper products, printing activities (by 13.2%), rubber and plastic products, other non-metallic mineral products (7%), food products (including beverages) and tobacco products (6.6%), basic metals and finished metal products, except machinery and equipment (by 4.4%), as well as in mining (by 22.4%).
Negative trends were observed in construction, where the decrease in volumes was 15.9%, wholesale and retail trade - 16.1%, while in agriculture, on the contrary, there was an increase of 1.1%.
In January-December 2020, the increase in consumer prices in the republic as a whole amounted to 9.7%. Prices for food products and soft drinks increased by 17.6%, alcoholic beverages and tobacco products - by 6.7%, tariffs for services provided to the population - by 3%, prices for non-food products - by 2.4%.
According to the National Statistics Committee, the maximum increase in consumer prices and tariffs in 2020 (11.8%) was recorded in the Talas region, which is due to the largest increase in prices for food products and soft drinks (by 23.5%).[3]
Public debt: 56% of GDP
Transfers from abroad
2023: Decrease in transfers from Russia by 14% to $2.53 billion
At the end of 2023, Russian citizens transferred approximately $2.53 billion to Kyrgyzstan. This is about 14% less than the result for the previous year, when the volume of transactions was estimated at $2.94 billion. Such indicators in mid-February 2024 are disclosed by the National Bank of the Kyrgyz Republic.
The report says that in 2023 a total of $2.71 billion was received from Kyrgyzstan from abroad. Thus, transfers from Russia accounted for 93.5% of the total volume of transactions carried out. Another approximately $45.3 million came from the United States, which corresponds to a decrease of 17.5% compared to 2022. Transfers from Turkey increased by 35.6% on an annualized basis, reaching $17.5 million. $16.7 million was transferred from Kazakhstan, which corresponds to an increase of 1.7 times in relation to 2022.
At the same time, approximately $561.2 million was transferred from Kyrgyzstan to other countries in 2023. For comparison: a year earlier, this figure was $1.2 billion. Thus, a drop of about 53% was recorded. Most of the funds from the republic were sent to Russia - $482.4 million (a decrease of 1.9 times on an annualized basis) and Turkey - $66.5 million (a decrease of 3.5 times compared to 2022).
In 2023, the net inflow of remittances to Kyrgyzstan reached $2.14 billion, which is 14.5% more than in the previous year. At the end of 2022, the volume of remittances of citizens to the republic amounted to $3.09 billion, from the country - $1.21 billion. Thus, net inflows were estimated at $1.87 billion.
At the same time, on February 15, 2024, the National Bank of the Kyrgyz Republic introduced the circulation of banknotes in denominations of 20, 50 and 100 soms of the new fifth series of the national currency of the 2023 model. They have a three-level complex of protective elements that are said to effectively prevent counterfeiting.[4]
2022: Transfer of a record $2.6 billion from Russia to Kyrgyzstan during the conflict in Ukraine
From Russia to Kyrgyzstan for 11 months of 2022, against the background of the conflict in Ukraine, individuals transferred a record amount of about $2.6 billion.
2020: Transfers from abroad account for 29.2% of GDP
In the economies of Kyrgyzstan and Tajikistan, foreign remittances from individuals play an extremely important role - mainly from citizens working in neighboring countries who send money to their families. In Tajikistan, such transfers account for 28.2% of national GDP, in Kyrgyzstan - 29.2% (data for June 2020).
Inflation
2022: Inflation in November - 15.4%
Power
2024
Rosatom signed a contract for the construction of a hydroelectric power station in Kyrgyzstan
On September 12, 2024, Rosatom Service (an enterprise of the electric power division of Rosatom State Corporation), the Russian-Kyrgyz Development Fund and Alfa Oil LLC signed an agreement on the construction of a small hydroelectric power station in the Kyrgyz Republic. We are talking about the Chandalash complex, which will be located in the Jalal-Abad region. Read more here
Agreement on the construction of the Kambartinsky GES-1
In June 2024, Kazakhstan, Kyrgyzstan and Uzbekistan signed an agreement on the construction of the Kambaratinsky GES-1 on the Naryn River at the international investment energy forum in Vienna.
This is the largest energy facility from the Kambaratinsky HPP cascade, which provides for the construction of a 256 m high dam and an 1860 MW HPP with a total reservoir capacity of 5.4 billion m³ of water.
According to Kyrgyz President Sadyr Japarov, success in the construction of the hydroelectric power station will ensure energy security and independence of the entire Kyrgyzstan after commissioning.
Earlier, Kyrgyzstan tried to complete the construction of the hydroelectric power station for more than 10 years. The involvement of the neighboring countries of Kyrgyzstan in the implementation of the project, re-launched in 2022, is not accidental. Kyrgyzstan is now free to make decisions on the supply of water to neighboring countries.
The shortage of electricity in the country forced Bishkek, in exchange for electricity supplies, to send the amount of water resources necessary to generate the same electricity to Uzbekistan and Kazakhstan (for agricultural needs).
Bishkek was regularly blackmailed by its neighbors by the fact that if the HPP project begins to be implemented and this changes the regulation of river flow, then electricity supplies will be stopped in conjunction with other pressure measures.
However, in 2024, the Kyrgyz authorities decided to build a small nuclear power plant and renewable power facilities with the help of Rosatom. This will allow Kyrgyzstan to ensure its energy independence, and without building a GES-1, and become a leader in electricity generation in the region.
Tashkent and Astana, having missed such initiative, were forced to quickly join the project for the construction of a hydroelectric power station, as well as intensify the issue of building their nuclear power plants in order to avoid electricity dependence on Kyrgyzstan in the future. As a result, Uzbekistan agreed with Rosatom on the construction of a low-capacity nuclear power plant, and a referendum on this issue is expected in Kazakhstan in the fall of 2024.
After the signing of the June agreement, the Chairman of the Cabinet of Ministers of Kyrgyzstan Akylbek Japarov said that there would no longer be a "show" in Central Asia due to water resources. Moreover, the full launch of the Kambaratinsk GES-1, taking into account the successful implementation of the CASA-1000 project (Central Asia - South Asia), will allow Kyrgyzstan to sell electricity outside the region and actually become the main regional electricity supplier.
As a result, at least part of the contradictions that have arisen in relations between the countries of the region since their independence and the destruction of the unified energy system of the USSR are removed. Moreover, cooperation between the countries will now take place on a more parity basis.
It is also important that the rapprochement of the CA countries is correlated with the overall energy strategy of the CIS countries promoted by Russia, since the implementation of the project will create conditions for strengthening cooperation between the countries of Central Asia, as well as for the confident consolidation of Rosatom in the region.
2020: Very low energy consumption per capita
and
Agriculture
2024: Ministry of Agriculture of Kyrgyzstan created a state-owned company for the digitalization of the agro-industrial complex
On October 21, 2024, the Ministry of Agriculture of Kyrgyzstan announced the creation of the Agro-Smart state enterprise with an authorized capital of 50 million soms (about 56 million rubles). The new company is designed to become a key tool in the process of digitalization of the country's agro-industrial complex, centralizing information flows and providing farmers with access to a single database. Read more here.
2019: Low use of pesticides in agriculture
Potato production per capita
1. Belarus - 631.3 kg per 1 person
2. Ukraine - 487.4 kg
3. Netherlands - 384.8 kg
4. Denmark - 343.3 kg
5. Belgium - 299.2 kg
6. Latvia - 251.3 kg
7. Kyrgyzstan - 230 kg
8. Poland - 229.8 kg
9. Russia - 216.8 kg
10. Kazakhstan - 208.5 kg
Logistics
Transport corridor to Russia through Turkmenistan
From July 2023, Uzbekistan and Kyrgyzstan can use the new multimodal transport corridor to Russia and back bypassing Kazakhstan through the Caspian Sea.
Foreign trade
2024
Maintaining record imports from South Korea amid sanctions against Russia
EU countries conduct direct supplies to Russia, indicating Kyrgyzstan in the documents
In April 2024, exports to Russia through third countries in Central Asia continue to remain at a record level. Kyrgyzstan is a key hub for transshipment, with exports from European countries never arriving in Bishkek. Kyrgyzstan is what is indicated in the bill, but these goods go directly to Russia.
Export of vehicles and spare parts from Germany by 5100% exceeded the level of 2019
The export of vehicles and spare parts from Germany to Kyrgyzstan in 2023 exceeded the level of 2019 by 5100%.
Germany's exports to Kyrgyzstan in February 2024 amounted to 74 million euros.
Growth in imports from China and Serbia at the beginning of the year
2023
Russia took second place in the foreign trade turnover of Kyrgyzstan
Russia took second place in the foreign trade turnover of Kyrgyzstan with a share of 18.7% at the end of 2023. Deputy Minister of Economic Development of Russia Dmitry Volvach spoke about this at a plenary meeting of the Intergovernmental Russian-Kyrgyz Commission on Trade, Economic, Scientific, Technical and Humanitarian Cooperation and the XI Russian-Kyrgyz Interregional Conference in July 2024.
 | Kyrgyzstan is a significant strategic partner of Russia. We are conducting a meaningful bilateral dialogue, developing fruitful interaction within the framework of multilateral formats - the EAEU and the CIS, - he said. |  |
At the meeting, the parties discussed cooperation, including agreements reached on expanding industrial cooperation, the construction of small hydroelectric power plants, solar and wind farms, the development of transport routes and joint projects in agriculture, as well as other pressing issues of cooperation in the economic and humanitarian spheres.
According to Dmitry Volvach, the opening of a representative office of the Russian Export Center in Kyrgyzstan, as well as the promotion of small and medium-sized enterprises of the two countries by the SME Corporation, give impetus to the development of economic relations between Russia and Kyrgyzstan.
Special attention at the meeting of the intergovernmental commission was paid to cooperation in the field of science and education: the construction of joint Russian-Kyrgyz schools in Kyrgyzstan, the projects "Ambassadors of the Russian Language in the World," "Russian Teacher Abroad," the activities of the Kyrgyz-Russian Slavic University named after the first President of Russia Boris Yeltsin.
In January-April 2024, the trade turnover of Russia and Kyrgyzstan increased by 30%. The Ministry of Economy of Kyrgyzstan associates this positive trend in trade relations, including with cooperation within the framework of the Eurasian Economic Union (EAEU).[5]
Decrease in annual trade turnover with Russia by 19% to $2.9 billion
Annual trade turnover between Russia and Kyrgyzstan has decreased. In 2023, trade between the two countries totaled $2.9 billion, down 19% from 2022. These data were provided by the National Statistical Committee of Kyrgyzstan in April 2024.
According to Kaktus.media, Kyrgyzstan's exports to Russia in 2023 decreased by 43%. At the same time, Russian exports to Kyrgyzstan also declined, decreasing by 9.2%. However, despite the decline in official statistics, the supply of goods between countries continued. Some companies from Kyrgyzstan continued to supply dual-use goods to Russia, despite the sanctions imposed on a number of enterprises.
The decline in trade between Russia and Kyrgyzstan may be due to various factors, including changes in economic policy, sanctions and other external factors. It is important to note that Russian President Vladimir Putin has previously noted an increase in trade between countries, which may indicate discrepancies in statistics. It is impossible to verify this, since since April 2022, Russia has closed access to foreign trade statistics.
In 2023, Kyrgyzstan actively exported dual-use goods to Russia, including electronic integrated circuits, radar devices and capacitors. According to the National Statistical Committee of Kyrgyzstan, in 2023, the export of electronic integrated circuits amounted to $12.2 million, which is significantly more than $612.8 thousand in 2022.
Re-export of radar equipment from Kyrgyzstan to Russia also increased, reaching 410.6 thousand dollars in 2023 against 169.8 thousand dollars in 2022. Capacitor exports increased from $0.5 thousand in 2022 to $20.6 thousand in 2023. In total, the re-export of goods from Kyrgyzstan to Russia, according to official statistics, amounted to $12.7 million.
The export of turbojet engines attracts special attention. In 2023, Kyrgyzstan delivered 2,166 turbojet engines to Russia in the amount of $19.3 million, which is significantly more than the $1.4 million exported for the entire 2022. These engines are used in aviation, including Su-27 fighters and cruise missiles.[6]
UAE export growth
in
Growth in imports from Germany by 1400% and from China
In the first 7 months of 2023, Germany's exports to Kyrgyzstan increased by 1400% compared to the same period in 2019, which indicates the desire of German companies to maintain supplies of their products to the Russian market according to the model of re-export through third countries.
2022
Record trade turnover with Russia $3.4 billion
In 2022, the trade turnover of Russia and Kyrgyzstan reached a record high, amounting to $3.4 billion.
Complete transition to settlements in rubles in trade with Russia
By mid-July 2022, Kyrgyzstan, when conducting trade operations with the Russian Federation, almost completely switched to settlements in Russian rubles.
The rise of trade with the United States and the EU due to bypassing sanctions against the Russian Federation
The rapid growth of trade flows USA EU with neighbors Russia may be a sign that sanctions can be avoided, the European Bank for Reconstruction and Development believes.
German exports to Russia from May to July 2022 fell 38% compared to the average for the same period in 2017-2019. However, it almost doubled to Armenia and more than tripled to Kyrgyzstan - a trend also seen in trade flows to the Caucasus and Central Asia from the US, Britain and EU countries.
IT market
Digital Kyrgyzstan
Main article: Digital Kyrgyzstan
2023: Kyrgyzstan was the first in the world to develop an IT code. It is needed to combine all digital norms into a common legal field
On July 11, 2023, it became known that Kyrgyzstan was the first in the world to develop the so-called Digital Code. The main goal of the initiative is to combine all digital norms into a common legal field. Read more here.
Internet
2024
Passage of anti-webcam legislation
At the end of July 2024, President of Kyrgyzstan Sadyr Japarov signed a law prohibiting undressing on a webcam to earn money and providing for responsibility for "organizing and promoting prostitution and debauchery through Internet networks (webcam studios)."
For activities in the webcam industry in Kyrgyzstan, it can now face punishment up to imprisonment for up to 15 years. For "organizing and facilitating prostitution and debauchery via the Internet live using a special platform (webcam studio)," a fine is imposed in the amount of ⃀100 to ⃀200 thousand or imprisonment for up to three years. The country's authorities believe that the law seriously tightens responsibility in this area.
The same actions committed by a group of persons or a group of persons by prior conspiracy will be punished with a fine of ⃀200-300 thousand or imprisonment for up to five years. For activities in the webcam industry as part of an organized criminal group, it faces up to seven years in prison with confiscation of property, and if children are involved, up to 15 years in prison.
Models of webcam studios will be fined ⃀10 thousand. The law was adopted by the Kyrgyz parliament on June 26, 2024. Its initiator, deputy Nurlanbek Azygaliev, noted that some people can be forced to work in the webcam industry through human trafficking. In his opinion, the law will help combat exploitation and protect vulnerable segments of the population.
Russia has established criminal liability for the production and distribution of pornography, including using the Internet, however, according to the head of the State Duma Committee on the Protection of the Family Nina Ostanina, there is no need to introduce additional measures to regulate the webcam industry by July 2024. She believes that the existing legislation as a whole adequately regulates this area.[7]
Blocking TikTok
In Kyrgyzstan, TikTok was blocked. This was announced by the Ministry of Digital Development of the country on April 19, 2024. Read more here.
Alcohol market
Minimum age to purchase alcoholic beverages
Transport
2024
There are 300 thousand taxi drivers in Kyrgyzstan, 70% of which are through Yandex Taxi
In Kyrgyzstan, there are about 300 thousand taxi drivers, 70% of whom work through the Yandex Taxi platform, which raises questions about the monopolization of the market and causes concern to the country's authorities. This is evidenced by the data provided in the draft resolution of the Cabinet of Ministers of Kyrgyzstan, published in August 2024. Read more here
Opening of the first automobile plant
On July 18, 2024, the official opening of the Tulpar Motors automobile plant took place in Kyrgyzstan. The plant, located on an area of 4.7 hectares, will produce cars, trucks and buses. The project was implemented by the Kyrgyz OsOO "DT-Technik" together with the Uzbek JSC UzAuto. Read more here
R&D
2020: R&D costs - $25m
Unemployment
2020: Unemployment rate - 6.6%
Consumption
2023: Beef is the most consumed type of meat
Notes
- ↑ Gross domestic product growth achieved at the end of this year
- ↑ Kyrgyzstan's GDP in 2022 grew by 7%
- ↑ The fall in Kyrgyzstan's GDP in 2020 amounted to 8.6%
- ↑ Remittances to Kyrgyzstan from the Russian Federation in 2023 decreased by 14%
- ↑ Dmitry Volvach: at the end of 2023, Russia took second place in the foreign trade turnover of Kyrgyzstan
- ↑ Turbojet engines - too. What is supplied from Kyrgyzstan to Russia
- ↑ President of Kyrgyzstan banned webcams
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