Asia > Central Asia > Kyrgyzstan > Kyrgyzstan's economy has demonstrated steady increase pace in January to July of 2015.

Kyrgyzstan: Kyrgyzstan's economy has demonstrated steady increase pace in January to July of 2015.

2015/08/18

The development of a range of industrial production entailed the increase of GDP in Kyrgyzstan by 7.1 %, according to statistics for January to July.

The National Statistical Committee provided the data as compared to the same period of last year, KyrTag reported.

The country's GDP grew mainly due to the development of the manufacturing industry, which made up of 42.6 % of all GDP increase. In addition, the increase of trade amounted to 9.8 % and construction totaled 8.9 % of total GDP increase.

The increase of the Kumtor gold mine, which is the major industrial investment for Kyrgyzstan, amounted to 2.6 % of the country's total GDP increase.

The share of goods production increased by 2.2 % as compared with January-July of last year to 35.8 % of total GDP increase.

The increase in production became possible because of the expansion of the share of industry by 2.8, while the share of service fields decreased by 0.9 % to 50.7 %.

The GDP deflator (price index of all sectors of the economy) made up 105 % in the current year.

Undoubtedly, the Kumtor gold mine is one of the major source of profit in Kyrgyzstan. The gold mine's development has given to the country additional than $2.7 billion by foreign investors over 20 years.

Kyrgyzstan with almost 4 tons of gold ranks 86 for the volume of gold reserves in the world, according to May Statistics of the World Gold Council.

Before, the Asian Development Bank (ADB) forecasted the next increase in country's trade with recovery in agro-processing and textiles as the member of the Eurasian Economic Union.

However, the current instable economic situation related to the Western sanction against Russia, had a negative impact on the national currency.

The ADB said that the increase slowed to 3.6 % in Kyrgyzstan in 2014 as result of weakening the economies of Russia and Kazakhstan, while local currency depreciation of about 19 % pushed inflation to 7.5 %.

The depreciation of currency and tariff increases on imports will keep the country's average annual inflation at 10.5 % in 2015 and 10.0 % in 2016 within the EEU, the ADB predicted.

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