The economy of the Kyrgyzstan

Kyrgyz Republic is an agro-industrial country. Agriculture is the leading branch of the economy, which creates about 40% of gross value added and employ more than half of the workforce. The share of agricultural land is 53.9% of the total territory of the republic. The main branch of agriculture is crop production (cultivation of grain, cotton, tobacco, oilseeds, fruits and vegetables and melons). There is a development of dairy cattle breeding. Breeding of sheep seems like a promising sector.

Major industries - hydro power, non-ferrous metallurgy, mining, engineering, instrumentation, light and food industries.
Mechanical engineering has developed mainly in the north of the country. The largest enterprises of light industry are also focused there (knitwear, garments, leather and shoe factories, worsted cloth factory). Most of the non-ferrous metallurgy is located in the south (Osh region). Osh city is also a major centre for the silk and cotton industries. The republic has a large cement production. Food industry include meat, cheese, sugar, vegetable oil, tobacco, etc., and almost completely work on local agricultural raw materials.

The Kyrgyz Republic has significant deposits of minerals such as mercury (1/5 of world reserves), antimony, gold (12 major fields, including Kumtor, one of the ten largest in the world), coal (the third largest reserve in the CIS). Its core contains oil, gas, wollastonite, shale oil, iron ore, non-ferrous and rare metals, platinum, stone veneer, sulphur, sand and gravel deposits. Production of hydro power resources seems to be a prospective direction.

After the collapse of the Soviet Union industry has declined, and some of the industries are in crisis. The main reasons that led to instability in the functioning of the industry as a whole and some of its branches, is the presence of physically obsolete equipment in majority of enterprises (depreciation of fixed assets is 90%), an investment is necessary, which makes it impossible to even produce competitive goods for the domestic market.

Mass export of raw materials, from the Republic, including agricultural commodities, breaking cooperative relations between the enterprises of the republic decreased utilisation of available capacities up to 34%.
Decline in production of consumer goods, their weak competitiveness has led to the displacement of local producers from the domestic commodity market of the country. The share of sales of domestic products in total turnover of the domestic market is 25-30%. In 2010, there were 53 large non working industrial enterprises. This is because of the exhaustion of the resource potential of most sectors of the loss of market, low technology and competitive products, the export of raw materials, leaching of cheap and quality goods.

Kyrgyzstan travel