Kyrgyzstan is a poor, mountainous country with a predominantly
agricultural economy. Cotton, tobacco, wool, and meat are the main agricultural products, although
only tobacco and cotton are exported in any quantity. Industrial exports include gold, mercury,
uranium, natural gas and electricity. Kyrgyzstan has been fairly progressive in carrying out
market reforms, such as an improved regulatory system and land reform. Kyrgyzstan was the first
CIS country to be accepted into the World Trade Organization. With fits and starts, inflation has
been lowered to an estimated 7% in 2001, 2.1% in 2002, and 4.0% in 2003. Much of the government's
stock in enterprises has been sold. Drops in production had been severe after the breakup of the
Soviet Union in December 1991, but by mid-1995 production began to recover and exports began to
increase. Kyrgyzstan has distinguished itself by adopting relatively liberal economic policies.
The drop in output at the Kumtor gold mine sparked a 0.5% decline in GDP in 2002, but GDP growth
bounced back to 6% in 2003. The government has made steady strides in controlling its substantial
fiscal deficit and aims to reduce the deficit to 4.4 percent of GDP in 2004. The government and the
international financial institutions have been engaged in a comprehensive medium-term poverty
reduction and economic growth strategy. Further restructuring of domestic industry and success
in attracting foreign investment are keys to future growth.
Gross Domestic Product (GDP)composition by sector:
agriculture 35%, industry 25%, services 40% (2002)
Labor force (by occupation): industry 15%,
agriculture 55%, services 30% (2000)
Unemployment rate: 7.2% (1999)
Industries: small machinery, textiles, food processing, cement, shoes, sawn
logs, refrigerators, furniture, electric motors, gold, rare earth metals
Agriculture - products: tobacco, cotton, potatoes, vegetables, grapes, fruits
and berries; sheep, goats, cattle, wool
Exports - commodities: cotton, wool, meat, tobacco; gold, mercury, uranium,
natural gas, hydropower; machinery; shoes
Exports - partners: Switzerland 19.8%, Russia 16.5%, UAE 14.2%, China 8.4%,
Kazakhstan 7.6%, US 7.4%, Uzbekistan 5.8% (2002)
Imports - commodities: oil and gas, machinery and equipment, chemicals,
foodstuffs
Imports - partners: Kazakhstan 21.1%, Russia 19.9%, Uzbekistan 10.2%,
China 10.1%, US 8%, Germany 5.3% (2002)