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.