Kyrgyzstan’s economic week, July 10-15, 2017

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The week was quite intense.

Sale of state property: The largest alcohol plant in Kyrgyzstan - Karabalta spirit plant state enterprise was put up for auction by the decision of the Government.

The plant covers an area of ​​30.3 thousand square meters, has extensive infrastructure, necessary equipment, buildings. The main product that the plant produces is pure alcohol.

$ 37 mln will be returned: According to the additional information, the Czech company Liglass Trading CZ, SRO, which won the tender for the construction of the Upper Naryn cascade of HPPs will repay Kyrgyzstan's debt to Russia in the amount of $ 37 million. In addition, the company is ready to build two incinerators and a solar station in Kyrgyzstan.

Many companies participated in the tender for the construction of 14 small hydropower plants, but the company from the Czech Republic offered the most interesting offers and won a tender for the construction of 10 power sites. The government commission unanimously recognized the Czech company as the winner. It is noteworthy that the rest of the power site will be built by the local Kaganat company.

The Islamic principle in the Kyrgyz Republic: This week it became known that Kyrgyzstan is interested in the introduction of new financial instruments in the financial market, in particular Islamic securities (sukuk). At a meeting with the delegation of the Islamic Development Bank led by Vice President Sayed Aga, Kyrgyz Finance Minister Adylbek Kasymaliev said that the role of IDB and other Arab Coordination Group funds is undoubtedly important in the social and economic development of Kyrgyzstan.

One of the priorities of the Development Program of the Kyrgyz Republic for 2018-2022 is the development of energy security, transport infrastructure, the agricultural sector and the participation of foreign investors in their implementation is very important.

In addition, Vice President of the Islamic Development Bank Sayed Aga said that Kyrgyzstan is leading among the countries of Central Asia in the implementation of Islamic financing principles after the third meeting of the round table with the participation of the Arab Coordination Group.

He said that Kyrgyzstan, using the right tools, is ahead of the promotion of Islamic financing principles.

Arab investments: Representatives of the Arab Coordination Group preliminarily approved projects for $ 357 million. At the third meeting of the round table with the participation of the Arab Coordination Group, Kyrgyzstan presented 23 projects. The total cost of proposed projects is $ 631 million. 15 of them are irrigation projects, 1 project for clean drinking water, 2 for on the transport and roads, and 5 projects for health.

GDP growth: At the beginning of the week, the National Statistics Committee of the Kyrgyz Republic announced that in the first six months of 2017, the country's GDP increased by 6.4%, compared to the same period in 2016, and amounted to almost 194 billion soms. According to the statistics, such results were achieved due to an increase in the volume of industrial production, construction and services.

The growth of industrial production from January to June is due to the growth in the output of basic metals by 1.5 times, the extraction of metal ores by 4.4 times, the production of base metals by 1.5 times and the purification of petroleum products by 1.4 times.

Export increase: This week it was announced that in Kyrgyzstan for the first half of 2017, the volume of exports increased by 30% compared to the same period in 2016. This is due to the increase in supplies of men's knitted garments by 1.6 times, dried fruits by 2.8 times, nonmonetary gold by 41.3%, precious metal ores and concentrates by 37.5%.

The volume of imports increased by 10.9% compared to the same period of the previous year and amounted to $ 1614.6 million. The increase is due to an increase in the volume of import of pharmaceutical products by 1.5 times, flour and confectionery products - 1.6 times, fabrics of artificial yarns - 6 times, other knitted garments - 1.5 times, bars of unalloyed steel - by 34,%, communications equipment and parts to it - by 9% ".

The volume of trade with the Eurasian Economic Unions states amounted to $ 874.1 million and increased by 11.4% compared to 2016.

For six months, exports to EEU countries increased by 29.3%, imports - by 6.3%. The largest share of mutual trade in the EEU countries falls to Russia - 51.8% and Kazakhstan - 48.2%.

Inflation is also growing, but slowly: According to data of the National Statistics Committee, consumer prices in the first half of 2017 increased by 0.4% compared to the same period in 2016. At the same time, the increase in prices is observed for food and non-alcoholic beverages by 0.5%, services - by 0.8%, alcoholic beverages and tobacco products - by 0.1%.

Trade with the USA: Trade turnover between Kyrgyzstan and the USA for 2016 amounted to $ 154 million and grew by $ 31 million compared to 2015. Representatives of American business came to Kyrgyzstan this week and took part in a business forum in Bishkek. It was said there that for 3 months of 2017, the amount of FDI inflows from the US amounted to almost $ 13 million US, which is more than 10 times more than the same period in 2016.

The Government of the Kyrgyz Republic welcomed the American business delegation, which is making a Central Asian tour. Prime Minister of Kyrgyzstan Sooronbai Zheenbekov held talks with the delegation of the US trade mission led by chairman of the US-Kyrgyz Business Council Thomas Firestone. The Kyrgyz prime minister said that the Government welcomes American investors and takes measures to create the most attractive conditions for them. He also added that the US remains one of the important trade and investment partners of Kyrgyzstan. It should be noted that in the history of Kyrgyz-American relations only this year the first Kyrgyz-American business forum is held. The Americans showed interest in investing in the economy of Kyrgyzstan. In particular, the sides discussed the major investment projects in the field of infrastructure, industry, and agriculture.

Western investments: Minister of Economy of Kyrgyzstan Arzybek Kozhoshev held talks in Switzerland with Director of the State Secretariat for Economic Affairs of the Swiss Confederation (SECO) Marie-Gabriel Ineichen Fleisch. The Kyrgyz minister said there that Switzerland for Kyrgyzstan is one of the main export markets. He stressed the need to diversify trade relations and investment cooperation between the two countries.

Kozhoshev proposed new round of cooperation with SECO, which is aimed at targeted support of Kyrgyz exporters in the garment industry and agriculture through the organization of training programs to enter the EU and Switzerland markets.

In addition, Minister Kozhoshev met in Geneva with Director General of the World Trade Organization (WTO) Roberto Azevedo. The sides discussed and agreed that despite the relatively high pace of trade activation in the world economy than in previous decades, trade barriers for developing and least developed countries also remain high, and the role of the donor community in "leveling" the terms of trade for all countries is extremely important.

Azevedo was informed about the current state of affairs in matters related to WTO activities, in particular, the establishment of the National Council for Trade Facilitation in the Kyrgyz Republic, which will serve as an open forum for promoting mechanisms to simplify trade relations between countries. At the meeting, Kyrgyzstan offered to hold a WTO seminar on the theme "The role of the WTO in the revitalization of the Great Silk Road" in 2018, in honor of the 20th anniversary of Kyrgyzstan's entry into the organization.

World Bank terms: The World Bank declared this week that if Kyrgyzstan will prove that Digital CASA not harms the environment, the World Bank sponsors the project. The representative of the Bank said that there is a list of requirements and if even one point does not implemented, then there will be no financing.

Within the framework of the Digital CASA project, it is planned to conduct fiber optic transmission lines in each village council, to all medical and educational institutions, police units and post offices. It is known that the World Bank approved the allocation of $ 50 million for the implementation of the Digital CASA project.

Trade with Uzbekistan: According to data of Uzbekistan, commodity turnover between Kyrgyzstan and Uzbekistan for the first half of 2017 increased by 1.5 times compared to the same period of the last year. At the same time, the volume of Kyrgyz exports to Uzbekistan has significantly increased. The local businessmen said that, there is a great demand in the Uzbek market for such building materials from Kyrgyzstan as travertine, glass, slate. Besides, agricultural products (potatoes, apple), light industry goods (leather and knitwear, clothes for women and children) are also of high demand.

Kabar News Agency

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