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Thursday 12 July 2018

Growth Slows Down in Kyrgyzstan


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BISKEK (24.kg) — In the first half of 2018, the trend towards a slowdown in the economic growth of Kyrgyzstan has become increasingly evident. GDP growth has practically stopped, prices have started decreasing gradually. Thus, the planned modest GDP growth of 3.6% seems to be unattainable.

According to the results of the first 6 months of the year, Kyrgyzstan’s GDP amounted to 213,640.3 bln soms. Compared with the same period of the last year, growth amounted to only 0.1%, which is a srious sign of the slow down of the Kyrgyz economy. Last year, the economy grew by 5.6% percent in the first six months. In just a month, the economic growth slowed down by other 0.6%.

Without taking into account the enterprises developing Kumtor mine, the situation is more pleasant. GDP formed in the amount of 192,607.2 bln soms and grew by 2.1% compared to 2017. Growth slowed down, but only by 0.4%.

Even more depressing figures are observed in the industrial sphere. For half a year, the enterprises have manufactured goods for 108,652,8 bln soms. Compared to 2017, the indicator fell by 6%. Last year, the industrial growth in Kyrgyzstan was the most significant among the CIS countries. This year, the growth rate in the mining sector declined sharply. However, the rates in textile and clothing industries are encouraging. In fact, the clothing sector prevents the domestic industry from collapse.

According to the results of the first half of the year, the growth was achieved in textile production (1.7 times), production of petroleum products (27.3%), clothes (24.8%), rubber and plastic products, and other non-metallic mineral products (24.5%).

In January-June, as a whole, there was a slight decrease in consumer prices (by 0.1%) in the republic. Last year, prices in the same period increased by 2.8%. Since the beginning of the year, the prices for food and non-alcoholic beverages (2.3%) and non-food products (0.6%) have declined. At the same time, tobacco products (15.4%), services (3.5%) and alcoholic beverages (2.7%) went up in the first half of the year.

According to the National Statistical Committee, the average monthly nominal salary in Kyrgyzstan was 15,397 soms. Compared with the last year, it grew by 7.4%. At the same time, there was an increase in the growth rate of wages at enterprises and organizations of all types of economic activity, except for the hotels and restaurants.

The most significant increase in the growth rates of average monthly salary occurred in construction (18%), other servicing activities (21.6%), information and communication (17.1%), state administration and defence, compulsory social security (13%), mining (12.1%).

At the same time, the real wage, calculated taking into account the consumer price index, increased by 4.7%. The average salary of workers in the public sector amounted to 12,037, and the non-budget sphere, 21,326 soms.

The ratio of wages of workers in the budget-funded sphere to the salary of workers in the non-budget sphere amounted to 56.4%.

As a result of the second quarter, the average monthly subsistence minimum in Kyrgyzstan was 4,899.54 soms. It grew by 15.05 soms for 3 months.

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