Publication: Kyrgyz Republic : Growth Rebounds, Risks Remain
Date
2014-03
ISSN
Published
2014-03
Author(s)
World Bank
Abstract
The Kyrgyz Republic's three party
coalition has tackled a number of events during 2013,
including mayoral elections in the country's biggest
cities Bishkek and Osh road blockages around Kumtor, the
country's largest gold mine; as well as tense
negotiations on the future of the mine; and clashes in the
south of the country. The government has navigated through
these difficult times, quashing a motion of no confidence in
parliament. An agreement between the Kyrgyz Republic and
Centerra Inc. the majority stakeholder in Kumtor was
accepted by parliament in early 2014. A surge in gold output
and solid growth in the non-gold sectors contributed to an
impressive 10.5 percent expansion of the Kyrgyz economy in
2013. Smaller increases in food prices than in recent years,
and relatively stable energy prices helped bring inflation
down. Expenditure controls and robust revenue outturns have
brought the fiscal deficit down to 3.5 percent of gross
domestic product (GDP). Preliminary estimates suggest the
trade deficit and current account deficit remained high in
2013. Medium term growth is expected to moderate to 5
percent, however, a number of risks remain. The exceptional
performance of gold output in 2013 is unlikely to be
repeated in 2014. The rest of the economy is expected to
continue expanding at 5 to 6 percent. A slowdown in the
Russian economy, declining gold prices, and uncertainty
created by the recent fluctuations in the exchange rate can
adversely affect this outcome. This report presents recent
political developments; recent economic developments; and
economic and structural policies.
Link to Data Set
Citation
“World Bank. 2014. Kyrgyz Republic : Growth Rebounds, Risks Remain. Kyrgyz Republic economic report;no. 5. © Washington, DC. http://hdl.handle.net/10986/18650 License: CC BY 3.0 IGO.”