Economic week of Kyrgyzstan June 10-15, 2019

This week Kyrgyzstan was rich with important financial and economic news as ever. The most of them were related to international affairs. If the plans and agreements outlined this week will be implemented, then in the near future significant financial and investment funds should come to Kyrgyzstan from ADB, China, India, and also from private companies.
Funds from ADB. The Asian Development Bank will provide financial resources for the rehabilitation of sewage facilities in Karakol and Balykchy towns of Kyrgyzstan.
This week, the Committee on Budget and Finance of the Parliament of the Kyrgyz Republic approved the draft law "On ratification of the Agreement between the Kyrgyz Republic and the ADB on the Issyk-Kul Waste Water Management project, signed on December 28, 2018 in Bishkek, and the Grant Agreement between the Kyrgyz Republic and the Asian Development Bank Issyk-Kul Waste Water Management project, signed on December 28, 2018 in Bishkek. The loan amount will be USD 41.82 million.
Kyrgyzstan at Petersburg Economic Forum. Kyrgyz Vice Prime Minister Zhenish Razakov represented Kyrgyzstan in the traditional annual St. Petersburg International Economic Forum.
Razakov took part in the plenary session with the participation of President of the Russian Federation Vladimir Putin.
He spoke at a panel discussion on "The Eurasian Economic Union. Future Strategy", during which an Agreement was signed on the exchange of information on goods and vehicles of international transport moved across the customs borders of the EAEU and China, and also spoke at an event organized by the Eurasian Development Bank "Investment Cooperation: Development and Integration".
As part of the forum at the initiative of the Qatari side, Razakov met with Foreign Minister of Qatar, Mohammed bin Abdulrahman bin Jassim Al-Thani.
Money for Makmal. To implement the project on resuming the work of Makmal Gold Company LLC, the founder Munson Group LLC transferred the first tranche in the amount of USD 1 million.
According to data of Kyrgyzaltyn OJSC, which is the founder of Makmal Gold, Munson Group actively participates in the work of the company.
It is known that within the framework of the Decree of the President on declaring 2018 the Year of Regional Development and the plan of the Government of the Kyrgyz Republic "Unity. Trust. Creation", on March 27, 2019, Kyrgyzaltyn and the winner of the competition Manson Group LLC signed an agreement to create a joint society on the basis of the branch " Makmalzoloto Combine."
GDP is growing. The gross domestic product in Kyrgyzstan, in January-May 2019 amounted to about KGS 184 billion.
According to data of the National Statistics Committee of the Kyrgyz Republic, this figure increased by 5.6%compared with January-May 2018.
Excluding enterprises developing the Kumtor field, the volume of GDP in January-May 2019 amounted to more than KGS 161 billion and increased by 1.5%.
The growth in industrial production compared with January-May 2018 was due to an increase in the production of base metals (by 47.2%), production of metal ores (by 38.2%), coal (by 19.8%), crude oil and natural gas (by 15.5%), as well as in textile production (by 8.3%).
Poverty is declining. The poverty rate in Kyrgyzstan in 2018 was 22.4% and decreased by 3.2% compared with the previous year. Extreme poverty was at the level of 0.6% and decreased by 0.2% compared to last year.
According to data of the National Statistics Committee of the Kyrgyz Republic, 1 million 429 thousand people lived below the poverty line in Kyrgyzstan in 2018, and 35 thousand people lived below the extreme poverty line. At that, 68% of the population living in poverty lives in rural areas.
About industrial products. In Kyrgyzstan, from the beginning of 2019 industrial output amounted to KGS 104 billion.
According to data of the National Statistics Committee of the Kyrgyz Republic, the figure compared with January-May 2018 increased by 17% due to an increase in the production of base metals (by 47.2%), production of metal ores (by 38.2%), coal (by 19.8%) ), crude oil and natural gas (by 15.5%), as well as textile production (by 8.3%).
Positive trends were recorded in agriculture, where volume growth was 1.7%, in construction - 5.0%, wholesale and retail trade - 4.4%.
Chinese business to Kyrgyzstan. As part of the state visit of Chinese President Xi Jinping to Kyrgyzstan, a Kyrgyz-Chinese business forum was held in Bishkek. First Vice Prime Minister of the Kyrgyz Republic Kubatbek Boronov said that the Forum plays a key role in expanding cooperation between the two countries in the field of trade and investment.
Boronov noted that after Xi Jinping’s concept of joint construction of the Silk Road Economic Belt, Kyrgyz-Chinese relations reached a new level, there is active interaction both at the government level and between the business circles of Kyrgyzstan and China.
Speaking about trade and economic cooperation, the First Vice Prime Minister noted that the volume of foreign direct investment from China in 2018 amounted to USD 338 million 92.6 thousand. The most attractive sectors for investors from China in recent years have been mining (54.3), manufacturing (23%), professional, scientific and technical activities (23).
Another forum participant, advisor on trade and economic issues of the Chinese Embassy in the Kyrgyz Republic, Li Yue, said that Chinese companies in Kyrgyzstan are investing mainly in the development of fields, oil refining and agriculture.
"Relations between Kyrgyzstan and China have a long history of friendship. In recent years, friendship has strengthened. Trade and economic cooperation continues to deepen," he said.
Billion investments. As part of the Chinese-Kyrgyz Business Forum, 24 documents were signed worth USD 7.7 billion.
Director of the Investments Promotion and Protecting Agency of the Kyrgyz Republic Shumkarbek Adylbek uulu, said after the Forum that one of the large-scale projects is the metallurgical industry, as well as the construction of two agro-industrial parks in the amount of USD 2 billion and USD 150 million respectively.
Flight to Delhi. After the completion of the SCO Summit, which was attended by Indian Prime Minister Narendra Modi, a Kyrgyz-Indian Business Forum was held in Bishkek. The sides announced there about plans to hold talks on opening a direct flight Bishkek - Delhi.
According to Kalybek uulu Bekturgan, a representative of the Chamber of Commerce and Industry of the Kyrgyz Republic in India, the trade turnover between Kyrgyzstan and India is $ 37 million, and this is very little, considering that India is a big country.
India and the defense industry. An Indian company in the field of defense and aerospace is ready to cooperate with Kyrgyzstan.
President of the Indian company Mahendra Group Shukla said that the company works in the defense and aerospace areas.
"Kyrgyzstan and India have a common problem - this is the most military equipment remained from the USSR. Our two countries need to replace military equipment and improve it. Our company is interested in cooperation in solving this problem. Also, our company is engaged in the release of small aircraft that can be used in the tourism sector or to review the borders. This is my first visit to Kyrgyzstan, I am planning to hold a series of meetings with representatives of the State Committee for Defense Affairs, the Ministry of Economy, the State Committee for Industry, Energy and Subsoil Use and The Investments Promotion and Protection Agency to consider issues of cooperation and demand," said Shukla.
Indian support. India will provide Kyrgyzstan with USD 200 million for the development of private business. Indian Prime Minister Narendra Modi said speaking at a meeting with President of the Kyrgyz Republic Sooronbay Jeenbekov.
The Indian Prime Minister said that he was very pleased to come to Bishkek and meet today with the head of Kyrgyzstan. He said that there are many similarities between Kyrgyzstan and India. "I feel that we have a common cultural heritage. India and Kyrgyzstan have been friends for centuries and our relationship reflects the closeness of cultures. We cooperate in almost all areas of bilateral relations. We agreed to raise our relations to the level of strategic cooperation. We also cooperate in the military-technical terms. Under the credit line, India provides $ 200 million to develop private business and increase the involvement of Indian companies in the Kyrgyz economy," Narendra Modi said.
Kabar News Agency