Some revival of the business environment has been observed in Kyrgyzstan this week. The electricity consumption increased slightly, however, this may be due to the cold weather in the country, business representatives expressed concern over zealous efforts to replenish the state budget at the expense of entrepreneurs, a bill was initiated to postpone electronic reports for some time, the country's Foreign Ministry called on business structures of neighboring countries to continue their work in Kyrgyzstan and assured their protection. At the same time, it was noted that the country's GDP is noticeably sagging, consumer goods also continue to rise in price, the volume of the budget deficit for the current year has been announced.
In general, the business part of society continues to try to recover and get out of the difficult situation with minimal costs.
Energy consumption. The National Electric Grid of Kyrgyzstan announced this week that electricity consumption in the Kyrgyz power system in November 2020 amounted to 1 billion 716 million 927 thousand kWh.
According to data of the company, in 2019, consumption for the same period amounted to 1 billion 625 million 586 thousand kWh.
Appeal of business ombudsman. This week, Business Ombudsman of the Kyrgyz Republic Robin Ord-Smith expressed concern about the increased pressure on entrepreneurs by law enforcement, fiscal and other government agencies.
“I have repeatedly expressed my opinion on this issue to the government of the Kyrgyz Republic. The desire to replenish the state budget is quite understandable, but at the same time, the long-term consequences of these measures should be taken into account. Businesses and entrepreneurs across the country were seriously affected by the pandemic and the October events; many went bankrupt, others - struggling to survive, many employees are not paid for months. Efforts to raise additional funds to the budget from business entities carry real risks of bankruptcy or forced closure. Actions that call into question the rule of law and the implementation of due process will hinder economic recovery, as well as cause increasing concern for business, current and potential investors, "said Robin Ord-Smith.
Postpone E-report. The Ministry of Economy of Kyrgyzstan this week proposed to postpone the transition to mandatory submission of tax returns in electronic form using an electronic signature until April 1, 2021. The bill has been submitted for public discussion.
According to the document, the purpose of the draft decree of the Government of the Kyrgyz Republic is to support business entities in the context of the COVID-19 pandemic, as well as in connection with appeals from the business community.
Inflow has decreased. The inflow of foreign direct investment to Kyrgyzstan in January-September 2020 decreased in comparison with the same period in 2019 by almost 31% and amounted to USD 398.4 million.
According to data of the National Statistics Committee of Kyrgyzstan, in the structure of foreign direct investment compared to 9 months of last year, there was a decrease in all components, with the exception of other accounts payable.
The bulk of foreign direct investment (90%) is directed to manufacturing, mining, exploration, financial intermediation and insurance, as well as information and communications. At the same time, the volume of investments in geological exploration decreased by 3.5 times, the information and communication sphere - 21.3%, financial intermediation and insurance - almost 9%, mining enterprises - 9.5%, manufacturing - almost 4%.
Foreign Ministry and business. This week, Minister of Foreign Affairs of Kyrgyzstan Ruslan Kazakbaev met with representatives of a number of Kazakh and Uzbek companies operating in Kyrgyzstan, with the participation of Ambassador of Kazakhstan to the Kyrgyz Republic Kairat Nurpeisov and Charge d'Affaires of the Embassy of Uzbekistan in the Kyrgyz Republic Ulugbek Abduyaminov.
Minister Kazakbaev highly appreciated friendly and trusting relations with the closest neighbors - Kazakhstan and Uzbekistan. "Comprehensive development of Kyrgyz-Kazakh and Kyrgyz-Uzbek relations, deepening mutually beneficial multifaceted cooperation, as well as strengthening good-neighborly relations meet the long-term priorities of Kyrgyzstan," the head of the Kyrgyz Foreign Ministry said.
He assured that the Kyrgyz side intends to continue to pursue a policy to improve the conditions for the implementation of investment projects in the Kyrgyz Republic.
GDP is lower. The gross domestic product of Kyrgyzstan in January-November 2020, according to preliminary estimates, amounted to about KGS 511 billion and, compared to January-November 2019, decreased by 8.1%. This became known during a briefing at the National Statistical Committee of the Kyrgyz Republic.
Excluding enterprises for the development of the Kumtor field, the volume of GDP in January-November 2020 amounted to more than KGS 453 billion and decreased by 8.6%.
Trade volume. The volume of foreign and mutual trade in goods of Kyrgyzstan in January-October 2020 amounted to USD 4.7 billion and, compared to January-October 2019, decreased by 18.1%.
The National Statistics Committee of the Kyrgyz Republic reported that export supplies increased by 4.7%, while import receipts, on the contrary, decreased by 26.9%.
The volume of mutual trade of the republic with the EAEU member states in January-October 2020 amounted to about USD 2.0 billion and, compared with January-October 2019, decreased by 13.7%.
At the same time, export supplies decreased by 12.8%, while import receipts - by 13.9%. The largest share of the republic's mutual trade with the EAEU member states fell on Russia (over 64%) and Kazakhstan (almost 34%).
Manufactured goods. The volume of industrial production in Kyrgyzstan in January-November 2020 amounted to about KGS 290 billion.
According to data of the National Statistics Committee of the Kyrgyz Republic, this indicator compared to January-November last year decreased by 5.5% due to a decrease in the production of petroleum products - by 56.8%, textile production, production of clothing and footwear, leather and leather goods - by 20, 6%, rubber and plastic products, other non-metallic mineral products - by 8.4%, wood and paper products, printing activities - by 4.6%, food products (including drinks) and tobacco products - by 4.3%, basic metals and finished metal products, except for machinery and equipment - by 2.6%, as well as in the extraction of minerals - by 22.0%.
Negative trends were observed in construction, where the decrease in volumes amounted to almost 16%, wholesale and retail trade - 15.6%, but there is an increase in agriculture - by 0.9%.
Prices are rising. In January-November 2020 (compared to December of the previous year), the increase in consumer prices in the republic as a whole amounted to 7.2 percent.
According to data of the National Statistical Committee of Kyrgyzstan, at the same time, prices for food and non-alcoholic beverages increased by 13.2 percent, alcoholic beverages and tobacco products - by 6.2 percent, tariffs for services provided to the population - by 2.2 percent, prices for non-food products - by 1.2 percent.
The maximum increase in consumer prices and tariffs since the beginning of this year (10.0 percent) was recorded in Talas Oblast, which was caused by the largest increase in prices for food products and soft drinks (by 20.1 percent).
Budget deficit. In 2020 the budget deficit is about KGS 29 billion.
This was announced by the Kyrgyz Government at a meeting of the Jogorku Kenesh, where the republican budget for 2020, 2021 and forecast for 2021-2022.
The government noted that significant amendments have been made to the proposed project to amend the 2020 republican budget. In particular, the revenue side of the republican budget for 2020 is projected at more than KGS 139 billion, the expenditure side is more than KGS 169 billion. The budget deficit is about KGS 29 billion.
New transfer. This week the Russian Post together with the Kyrgyz Post launched a new money transfer service "PosTransfer" between Russia and Kyrgyzstan.
It allows to instantly make postal money transfers, which become available to receive immediately after sending.
The transfer is available at any post office connected to the service. In Russia, the service is provided by more than 30 thousand post offices, in Kyrgyzstan - more than 400. The transfer limit is RUB 300 thousand.
Kabar News Agency
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