Kyrgyzstan Economy - 2005

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, and natural gas and electricity. Kyrgyzstan has been fairly progressive in carrying out market reforms, such as an improved regulatory system and land reform. Kyrgyzstan was the first CIS country to be accepted into the World Trade Organization. With fits and starts, inflation has been lowered to an estimated 7% in 2001, 2.1% in 2002, 4% in 2003, and 3.2% in 2004. 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. Kyrgyzstan has distinguished itself by adopting relatively liberal economic policies. The drop in output at the Kumtor gold mine sparked a 0.5% decline in GDP in 2002, but GDP growth bounced back to 6% in 2003 and 2004. The government has made steady strides in controlling its substantial fiscal deficit and aims to reduce the deficit to 3% of GDP in 2004. The government and the international financial institutions have been engaged in a comprehensive medium-term poverty reduction and economic growth strategy. Further restructuring of domestic industry and success in attracting foreign investment are keys to future growth.

GDP:
purchasing power parity - $8.495 billion (2004 est.)

GDP - real growth rate:
6% (2004 est.)

GDP - per capita:
purchasing power parity - $1,700 (2004 est.)

GDP - composition by sector:
agriculture: 38.5%
industry: 22.8%
services: 38.7% (2004 est.)

Labor force:
2.7 million (2000)

Labor force - by occupation:
agriculture 55%, industry 15%, services 30% (2000 est.)

Unemployment rate:
18% (2004 est.)

Population below poverty line:
40% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 3.9%
highest 10%: 23.3% (2001)

Distribution of family income - Gini index:
29 (2001)

Inflation rate (consumer prices):
3.2% (2004 est.)

Investment (gross fixed):
17% of GDP (2004 est.)

Budget:
revenues: $431.3 million
expenditures: $445.4 million, including capital expenditures of NA (2004 est.)

Agriculture - products:
tobacco, cotton, potatoes, vegetables, grapes, fruits and berries; sheep, goats, cattle, wool

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

Industrial production growth rate:
6% (2000 est.)

Electricity - production:
11.72 billion kWh (2002)

Electricity - consumption:
10.21 billion kWh (2002)

Electricity - exports:
1.062 billion kWh (2002)

Electricity - imports:
375 million kWh (2002)

Oil - production:
2,000 bbl/day (2001 est.)

Oil - consumption:
20,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Natural gas - production:
16 million cu m (2001 est.)

Natural gas - consumption:
2.016 billion cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
2 billion cu m (2001 est.)

Current account balance:
$-87.92 million (2004 est.)

Exports:
$646.7 million f.o.b. (2004 est.)

Exports - commodities:
cotton, wool, meat, tobacco; gold, mercury, uranium, natural gas, hydropower; machinery; shoes

Exports - partners:
UAE 23.8%, Switzerland 16.9%, Russia 16.9%, Kazakhstan 10.1%, China 9.8% (2004)

Imports:
$775.1 million f.o.b. (2004 est.)

Imports - commodities:
oil and gas, machinery and equipment, chemicals, foodstuffs

Imports - partners:
Russia 23.1%, China 22.9%, Kazakhstan 19.3%, Turkey 7.2%, Germany 4.5%, Uzbekistan 4.4%, US 4.2% (2004)

Reserves of foreign exchange and gold:
$498.7 million (2004 est.)

Debt - external:
$1.97 billion (2004 est.)

Economic aid - recipient:
$50 million from the US (2001)

Currency (code):

Exchange rates:
soms per US dollar - 42.65 (2004), 43.648 (2003), 46.937 (2002), 48.378 (2001), 47.704 (2000)