April 2020. Kyrgyz Republic: trends and forecasts

08 April 2020

GDP growth in the Kyrgyz Republic accelerated to 4.5% in 2019, largely on account of production activity at the Kumtor mine, whose gold output exceeded the company’s targets. In other sectors, services and the construction industry were the key drivers of growth.

Inflation accelerated to 3.1% by the end of 2019, up from 0.5% a year before. The slowing inflation trend stopped in 2Q2019 as world grain and meat product prices grew and the supply of vegetables was limited in the domestic market. The non-food basket price remained virtually the same as in 2018 as the som to U.S. dollar exchange rate remained stable.

The current account deficit has tended to narrow as exports grow (primarily, gold) while imports of goods and services decline. The lower volume of imported goods partly results from the use of tangible inventory stocks accumulated in the preceding year (textile imports) and from a weak price situation in the world energy commodity market.

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