World Bank Group2014-12-082014-12-082014-10https://hdl.handle.net/10986/20673Political developments at home and abroad have been prominent this year. Domestically, a new government was formed quickly after one of the coalition parties withdrew the support to Prime Minister Satylbaldiev in March, 2014. The new government, led by Prime Minister Djoomart Otorbayev, represents the same coalition of political parties providing continuity on most policies but also a fresh momentum for reforms in key sectors. The next round of parliamentary elections is scheduled for the autumn 2015. Internationally, the Kyrgyz Republic has made firm commitments towards accession to the Customs Union of Belarus, Kazakhstan and Russia while tensions have appeared in relations with some neighbors. Growth has slowed down significantly and we have revised our projection for real GDP growth to 3 percent for 2014 as a whole from the 4 percent we projected in April. Despite robust government investment and gold exports, economic activity has moderated as the slowdown in Russia, the winding down of operations at the Manas Transit Center and increased tensions in trade relations with neighbors are affecting remittances and non-gold exports. Economic activity has been further affected by the poor agriculture harvest while difficulties expected in ensuring stable energy supply in the winter may add a further drag on activity in the rest of the year. Fast growth rates in credit to the private sector and in construction are leveling off as businesses report a more difficult operating environment.en-USCC BY 3.0 IGOACCOUNTINGADVERSE IMPACTAGRICULTUREARREARSBALANCE OF PAYMENTSBANKING SECTORBARLEYBASIS POINTSBROAD MONEYBUDGET DEFICITBUFFERSBUSINESS ENVIRONMENTCAPACITY CONSTRAINTSCAPITAL ADEQUACYCASH HOLDINGSCENTRAL BANKCOMMERCIAL BANKSCOMMODITYCOMMODITY EXPORTSCOMMODITY PRICESCOMPETITIVENESSCOMPLIANCE COSTSCONNECTIVITYCONSOLIDATIONCONSUMERSCONSUMPTION GROWTHCORE INFLATIONCREATION OF JOBSCREDIT EXPANSIONCREDIT FACILITYCREDIT GROWTHCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITCUSTOMS DUTIESCUSTOMS UNIONDEBTDEBT FINANCINGDEMAND FOR CREDITDEPOSITDEPOSITSDEPRECIATIONDEVALUATIONDEVELOPMENT BANKDEVELOPMENT PROJECTSDEVELOPMENT STRATEGYDISBURSEMENTSDISCOUNT RATEDISPOSABLE INCOMEDOMESTIC DEMANDDOMESTIC PRICESECONOMIC ACTIVITYECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC SLOWDOWNECONOMIC TRANSACTIONSELASTICITYEQUIPMENTEXCHANGE RATEEXCHANGE RATE POLICIESEXPENDITUREEXPENDITURESEXPORT VOLUMEEXPORTERSEXPOSUREEXTERNAL DEBTEXTERNAL DEFICITEXTERNAL DEMANDEXTERNAL SHOCKSEXTREME POVERTYFINANCIAL FLOWSFINANCIAL INFLOWSFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL MARKET DEVELOPMENTFINANCIAL SECTORFINANCIAL SECTOR INDICATORSFINANCIAL SERVICESFISCAL BALANCEFISCAL DEFICITFISCAL POLICYFLOATING EXCHANGE RATEFLOATING EXCHANGE RATE REGIMEFOOD PRICEFOOD PRICESFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN INFLOWSFOREIGN LOANSFOREIGN TRADEFRAUDGDPGDP PER CAPITAGEOPOLITICAL TENSIONSGOLDGOLD PRICESGOVERNMENT BORROWINGGOVERNMENT DEBTGOVERNMENT INVESTMENTGOVERNMENT POLICYGOVERNMENT SPENDINGGROWTH RATEGROWTH RATESHUMAN CAPITALHUMAN DEVELOPMENTIMBALANCEIMPORTIMPORTSINCOME TAXINFLATIONINFLATIONARY PRESSURESINSURANCEINTEREST RATEINTEREST RATESINTERNATIONAL PRICESINTERNATIONAL RESERVESINVESTMENT LEVELSINVESTMENT PROJECTSISSUANCEJOB CREATIONJUDICIAL REFORMJURISDICTIONSLABOR FORCELABOR MARKETLABOR MARKETSLAW ENFORCEMENTLIQUIDITYLOANLOSS OF REVENUESM2MACROECONOMIC ENVIRONMENTMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARKET ACCESSMARKET DEVELOPMENTMARKET EFFICIENCYMARKET SHAREMARKET SIZEMETALSMONETARY AGGREGATESMONETARY CONDITIONSMONETARY POLICYMONEY SUPPLYNATIONAL BANKNATURAL RESOURCENET CAPITALNOMINAL EXCHANGE RATENON-PERFORMING LOANSOILOIL PRICESOUTPUTPENSIONPENSION REFORMSPENSIONSPOPULATION GROWTHPORTFOLIOPOVERTY REDUCTIONPREFERENTIAL ACCESSPRICE CHANGESPRICE INCREASESPRICE STABILITYPRIVATE SECTOR DEVELOPMENTPRODUCERSPRODUCTION COSTSPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SPENDINGPURCHASING POWERRAPID CREDIT EXPANSIONRAPID EXPANSIONRAPID GROWTHRE-EXPORTSREAL APPRECIATIONREAL EFFECTIVE EXCHANGE RATEREAL EXCHANGE RATEREAL EXPORTREAL GDPREAL IMPORTREAL WAGESREGISTRY SYSTEMSREGULATORY REFORMREMITTANCESREMUNERATIONRESERVERESERVE ACCUMULATIONRESERVE MONEYRESERVESRESOURCE MANAGEMENTRETURNRETURN ON ASSETSSECTOR REFORMSECTOR REFORMSSETTLEMENTSHORTFALLSLOWDOWNSOCIAL FUNDSTRONG DEMANDSTRUCTURAL REFORMSSUPPLY DISRUPTIONSSURPLUSTARIFF POLICIESTARIFFS ON IMPORTSTAXTAX COLLECTIONTAX POLICYTAX RATESTAX REVENUESTAXATIONTELECOMMUNICATIONSTERMS OF TRADETOTAL EXPORTSTRACK RECORDTRADE BALANCETRADE DEFICITTRADE FACILITATIONTRADE RELATIONSTRADINGTRADING PARTNERSTRANSBOUNDARY RIVER BASINSTRANSPARENCYTREASURYTREASURY BILLTREASURY BILL RATETREATYUNCERTAINTYUNEMPLOYMENTUNEMPLOYMENT RATEVOLATILITYWAGE GROWTHWEIGHTSWHOLESALE MARKETSWITHDRAWAL10.1596/20673