Economy

After several transitional years, caused by the collapse of the Soviet Union and search for an independent development framework, the Kyrgyz Republic successfully set course on economy recovery.

Kyrgyzstan’s membership in World Trade Organization became one of the most significant stages of the nation’s economy recovery. It is worth noting that Kyrgyzstan was the first CIS country to join the WTO.

Kyrgyzstan successfully develops market economy. International experts have noted the introduction of private land-ownership reforms and the introduction of international legislative standards as two of the most significant changes implemented by the Republic.

Agriculture, gold mining, hydro-energy and non-ferrous metallurgy as well as light and food industries are the nation’s flagship industries.

Agriculture, Kyrgyz Republic’s leading industry, is the source of the over one-third of the Kyrgyz gross domestic product. Major components of the Kyrgyz agricultural industry are livestock breeding (meat, dairy and wool production) as well as tobacco, cotton and industrial crops production, gardening, beekeeping and vegetable growing. Kyrgyzstan fully covers its foodstuff needs and exports food to Kazakhstan and Russia.

The industry of the Kyrgyz Republic, which produces over 20% of GDP, consists of processing industry, non-ferrous metallurgy and mineral resources industry.

The “Kumtor” gold-mining project (a joint venture with “Kameko” Canada) is one of the most significant commercial ventures in the Kyrgyz Republic. This enterprise generates nearly 35% of the country’s total exports and is responsible for generating approximately one-tenth of the domestic production. Kyrgyz Republic is the third among other CIS countries for gold-mining output.

Strong hydro-energy complex is possibly the nation’s greatest heritage from the Soviet Union. The country’s hydro-energy infrastructure is the second largest source of Kyrgyz exports. To underscore the importance of this industry, it should be noted that the cumulative hydro-energetic reserves of the Kyrgyz rivers exceed those of the famous Russian Volga river by several hundred percent. Kyrgyzstan exports electricity to Russia (over 1.5 billion kW annually) as well as to neighbouring Kazakhstan, Uzbekistan, Tajikistan and China. Hydro-energy complex secures the excellent perspectives to replace the import of energy resources as the 75-100 thousand tons of oil extracted in Kyrgyzstan annually cover only one third of the country’s need in energy.

The country has developed a sufficient environment for successful development. Kyrgyzstan has established a multi-structural economy and posses rich natural and highly competent human resources. The country’s strategic development plan is proved by the consistently increasing inflow of direct foreign investments, dynamically developing banking sector and the population confidence in financial institutions.