The last week was marked by a specially convened Forum of Donors of Kyrgyzstan held in Bishkek, which brought together representatives of the largest donors of Kyrgyzstan, as well as representatives of international financial organizations. The EU, WB, and embassies of different countries expressed assistance in Kyrgyzstan’s efforts to develop the economy. The EDB announced its forecast for Kyrgyzstan’s GDP growth, the French showed interest in Kyrgyzstan, the Green Forum took place in Bishkek, at which Kyrgyzstan announced its accession to the Paris Protocol.
GDP of the Kyrgyz Republic. In January-October 2019, real GDP growth in Kyrgyzstan made at the level of 5.7%, which is 3.6% higher than the level of the corresponding period of 2018, and the nominal volume of GDP was at the level of KGS 454.9 billion.
According to data of the National Statistics Committee of the Kyrgyz Republic, real growth of the economy, excluding enterprises for the development of the Kumtor deposit, amounted to 3.3% (an increase of 3.0% in January - October 2018).
The consumer price index for January-October 2019 compared to December of the previous year amounted to 1.2% (for January-October 2018 to December 2017 (-0.9%)).
Donors’ feedback on KG. The High Level Development Forum “Accelerating Reforms for Sustainable Development” was held in Kyrgyzstan this week with the participation of international donor organizations, international financial institutions, and development partners. It was stated that for donor organizations, priority areas are those that have been identified by the country.
Véronique Hulmann, the Ambassador of Switzerland to the Kyrgyz Republic said that in October all donor communities met with government representatives to discuss progress over the past years.
“Over the past few months, we have worked closely with representatives of the Kyrgyz government to evaluate these achievements and develop an action plan for the next four years. Tomorrow we will discuss whether we all agree with the achievements and activities for the next 4 years, as well as coordinate our actions with the plans and strategies of Kyrgyzstan,” she said.
Funds from the EU. At the Forum of Donors, it was also stated that support for the budget of Kyrgyzstan by the European Union speaks of the EU's confidence in the country's reforms.
At the same time, EU Special Representative for Central Asia Peter Burian noted that such support cannot be eternal, therefore, he supported the priorities of Kyrgyzstan in attracting investments and using domestic resources.
“These priorities are reflected in the development programs of Kyrgyzstan. I have repeatedly wanted to note a strong political will to accelerate the implementation process,” he said.
Burian noted that the EU wants and will remain a strong and reliable partner of Kyrgyzstan, which is also stated in the document on bilateral cooperation.
In addition, he said that the EU intends to support the process of modernization of Kyrgyzstan and access to technology.
WB support. “The World Bank supports the two main areas of development announced by President of the Kyrgyz Republic - regional development and digitalization,” Mariam Sherman, Director of Strategy and Operations of the World Bank for the Europe and Central Asia Region, said at the High Level Development Forum “Accelerating Reforms for Sustainable Development”.
She noted that supporting integrated regional development through transformational investments to accelerate economic growth is one of the key elements in the framework of the World Bank's Framework Partnership for 2018-2022.
“We have chosen Osh city and Osh Oblast and focus on agribusiness and tourism as pilot sectors that have high potential for growth and job creation. If successful, this program will be replicated in other regions,” said Mariam Sherman.
EDB forecast for economic growth. The Eurasian Development Bank forecasts the growth of Kyrgyzstan’s economy in 2020-2021 at the level of 3.4%.
At the same time, it was clarified that these data were prepared by the EDB analytical work directorate.
According to the statement of EDB Director of Analytical Affairs Andrei Falileev, the GDP growth rate of Kyrgyzstan in 2019 will accelerate to 4.0% due to the restoration of gold production and an increase in export volumes. Compared to the previous forecast (April 2019), the estimate has not changed. EDB analysts expect the economy of the Kyrgyz Republic to grow in 2020–2021an average of 3.4% annually.
EDB analysts note that the slowdown in inflation stopped in the second quarter of 2019 against the backdrop of rising world prices for grain and meat products, as well as a limited supply of vegetables on the domestic market. The cost of the non-food basket practically did not change compared to the first half of 2018 under the conditions of a stable exchange rate of the Kyrgyz som against the US dollar.
French interest. This week, meetings were held in Paris between Minister of Foreign Affairs of the Kyrgyz Republic Chingiz Aidarbekov and chairman of the business councils “France - Central Asia” “MEDEF International” Christophe Fontaine and the leadership of several French companies - “GE Hydro France” , "Egis", "Flowbird" and others.
At the meeting, the French side focused on the advantages of the geo-economic situation of Kyrgyzstan. They noted the creation of favorable conditions for doing business in the country, the establishment of the Business Ombudsman Institute, the introduction of a moratorium on inspections of private enterprises for two years until January 1, 2021, the growth of GDP and foreign direct investments and others.
Christophe Fontaine noted the ongoing deepening of relations with the Kyrgyz Republic. He said that a number of French companies are already successfully operating in Kyrgyzstan, some plan to enter the Kyrgyz market in the very near future.
Agricultural production of the Kyrgyz Republic in India. This week, the Embassy of the Kyrgyz Republic in India presented agricultural products in the form of dried fruits and honey at the 39th annual International Trade Fair “India International Trade Fair-2019” in New Delhi.
More than 175 companies from 20 countries take part in this exhibition, including from China, Great Britain, Thailand, Qatar, Turkey, Malaysia, Bahrain, Taiwan, Bhutan, etc.
The exhibition is dedicated to the theme “Ease of Doing Business” as a sign of India's remarkable progress in the World Bank's Ease of Doing Business Index.
Green Forum. The Fifth anniversary forum “Green Economy - strong regions - sustainable development of the country” concluded its work in Bishkek this week.
Among the main results, the organizers highlighted: Kyrgyzstan’s ratification of the Paris Agreement on Climate Change, adoption of the “Program for the Development of the Green Economy in Kyrgyzstan for 2019-2023.", Integration of green economy initiatives as priorities in the National Development Strategy of the country - 2040.
Summing up, the head of the secretariat of Partnership for Action on Green Economy (PAGE) Asad Naqvi, separately noted the achievements of the Ministry of Economy of the Kyrgyz Republic in successfully promoting the principles of the green economy in the country.
For business in regions. Within the framework of the Year of Regional Development and Digitalization of the Country, for the first time the Government of the Kyrgyz Republic allocated funds from the state budget to support business in the regions.
Head of the Investment Policy Department of the Ministry of Economy of the Kyrgyz Republic Khanchoro Murzaliev said that, a special commission was created to select business projects, and 30 business projects were approved. “All these 30 projects are located in the regions and financing is aimed at creating or expanding production enterprises. Sectors of business projects are agriculture, tourism, light industry, IT, etc.,” Murzaliev said.
Kabar News Agency
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