World Bank2014-06-122014-06-122014-03https://hdl.handle.net/10986/18650The 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.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING RULESAGGREGATE DEMANDAGRICULTUREASSET RATIOASSETSBALANCE OF PAYMENTSBANKING SECTORBARRIERBROAD MONEYBUDGET DEFICITBUSINESS ENVIRONMENTCAPITAL ADEQUACYCAPITAL INFLOWSCENTRAL BANKCHECKSCOALCOAL PRICESCOMMODITYCOMMODITY MARKETSCOMMODITY PRICECOMPETITIVENESSCONSUMER PRICE INDEXCONSUMER PRICE INFLATIONCONSUMPTION BASKETCONSUMPTION GROWTHCORE INFLATIONCPICREDIT EXPANSIONCREDIT GROWTHCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITCUSTOMS UNIONDEBT FORGIVENESSDEBT SERVICEDEBT SERVICE RATIODEBT SUSTAINABILITYDEPOSITDEPOSITSDEVALUATIONDEVALUATIONSDEVELOPING COUNTRIESDEVELOPMENT BANKDOLLAR EXCHANGE RATEDOMESTIC DEMANDDOMESTIC INFLATIONDOMESTIC PRICESDRAG ON GROWTHECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC OUTLOOKECONOMICSEMERGING ECONOMIESEMERGING MARKETSENVIRONMENTALEQUIPMENTEQUITY RETURNEXCHANGE RATEEXCHANGE RATE POLICIESEXPENDITUREEXPENDITURESEXPORT EARNINGSEXPORT GROWTHEXPORTERSEXPORTSEXTERNAL DEBTEXTERNAL DEMANDFAIR MARKET VALUEFARMSFINANCIAL SYSTEMSFINANCING REQUIREMENTSFISCAL BALANCEFISCAL DEFICITFISCAL POLICYFISHERIESFIXED ASSETSFOOD PRICEFOOD PRICESFORECASTSFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN EXCHANGE RESERVESFOREIGN LOANSFRAUDGDPGDP PER CAPITAGINI COEFFICIENTGOLDGOLD PRICEGOLD PRICESGOVERNANCE INDICATORSGOVERNMENT REVENUESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROSS NATIONAL SAVINGSGROWTH IN TRADEGROWTH RATEHOUSEHOLD INCOMESHUMAN DEVELOPMENTIMPORTIMPORT GROWTHIMPORT PRICESIMPORTSINCOMEINCOME TAXINCOME TAXESINFLATIONINFLATIONARY PRESSURESINFORMAL ECONOMYINFRASTRUCTURE PROJECTSINTEREST RATESINVESTMENT ACTIVITIESINVESTMENT CLIMATEINVESTMENT LEVELSINVESTMENT PROJECTSINVESTOR CONFIDENCEJOINT VENTURELABOR FORCELABOR MARKETLABOR MARKETSLABOR PRODUCTIVITYLIFE EXPECTANCYLIQUIDITYLOCAL CURRENCYLOW-INCOME COUNTRYM2MARKET SHAREMARKET VALUEMATURITYMETALSMICRO ENTERPRISESMINESMONETARY AGGREGATESMONETARY POLICYMULTIPLIER EFFECTSNATIONAL BANKNATIONAL SAVINGSNET EXPORTSNOMINAL EXCHANGE RATENOMINAL WAGENON-PERFORMING LOANNON-PERFORMING LOANSNONPERFORMING LOANSNPLOILOIL PRICESOUTPUTOUTTURNSPENSIONSPOLICY RESPONSESPOLITICAL STABILITYPOLITICAL UPHEAVALPOPULATION GROWTHPOVERTY LEVELSPRICE INCREASESPRICE INDEXPRICE INFLATIONPRIVATE CONSUMPTIONPRIVATE SECTOR CREDITPRODUCERSPRODUCTIVITYPROPERTY RIGHTSPUBLIC DEBTPUBLIC FINANCEPUBLIC INVESTMENTREAL EFFECTIVE EXCHANGE RATEREAL EXCHANGE RATEREAL WAGESREMITTANCEREMITTANCESRETURNRETURN ON ASSETSRETURNSRULE OF LAWSHARE OF INVESTMENTSHARE PRICESSLOWDOWNSTRUCTURAL CHANGESTRUCTURAL REFORMSSUSTAINABLE DEVELOPMENTTAXTAX COLLECTIONTAX LIABILITIESTAX POLICYTAX RATETAX REGIMETAX REVENUESTELECOMMUNICATIONSTERMS OF TRADETOTAL EXTERNAL DEBTTOTAL INVESTMENTTRADE BALANCETRADE DEFICITTRADE FACILITATIONTRADE LOSSESTRADE POLICYTRADE REGIMETRADINGTRADITIONAL MARKETSTRANSPARENCYTREATYUNCERTAINTIESUNCERTAINTYUNEMPLOYMENTUNEMPLOYMENT RATEVALUE ADDEDVOLATILITYVULNERABILITY TO SHOCKSWAGE GROWTHWAGESWEIGHTSWHOLESALE MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTO10.1596/18650