Kyrgyzstan Economy 2007

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, but political instability during 2005-06 has undercut the investment climate. 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, but GDP growth bounced back the following year. In 2005 Kyrgyzstan again experienced a decline in GDP, this time 0.6%. The government has made steady strides in controlling its substantial fiscal deficit, nearly closing the gap between revenues and expenditures in 2006. 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):
$10.73 billion (2006 est.)

GDP (official exchange rate):
$2.255 billion (2006 est.)

GDP - real growth rate:
2.7% (2006 est.)

GDP - per capita (PPP):
$2,100 (2006 est.)

GDP - composition by sector:
agriculture: 33%
industry: 20.1%
services: 46.9% (2006 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%: 3.8%
highest 10%: 24.3% (2003)

Distribution of family income - Gini index:
30.3 (2003)

Inflation rate (consumer prices):
5.6% (2006 est.)

Investment (gross fixed):
17.1% of GDP (2006 est.)

Budget:
revenues: $624.6 million
expenditures: $630.1 million (2006 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:
-4.5% (2006 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:
1,378 bbl/day (2004)

Oil - consumption:
10,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
40 million bbl (1 January 2006)

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)

Current account balance:
$-400.1 million (2006 est.)

Exports:
$810.8 million f.o.b. (2006 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:
$1.792 billion f.o.b. (2006 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)

Economic aid - recipient:
$268.5 million from the US (2005)

Reserves of foreign exchange and gold:
$817 million (2006 est.)

Debt - external:
$2.483 billion (30 June 2006 est.)

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)

Currency (code):
som (KGS)

Exchange rates:
soms per US dollar - 40.149 (2006), 41.012 (2005), 42.65 (2004), 43.648 (2003), 46.937 (2002)