Kyrgyzstan predicts 7% GDP growth in 2013
BISHKEK. Feb 18 (Interfax) - Economic growth in Kyrgyzstan will be at least 7% in 2013, the government and National Bank of Kyrgyzstan said in a joint statement.
The authorities predict that inflation will not reach double digits.
A key task for the year is to restore macroeconomic stability and create basic conditions for achieving a steady rate of economic growth. The main factors behind this objective are to ensure social and political stability as well as efficient use of domestic resources and Kyrgyzstan's own potential, the statement said.
Risks include a rise in international food prices, the domestic bakery market's dependence on imports of grain and flour and uncertainty over trade conditions with the main trade partners. The authorities are concerned about the drop in the GDP growth forecast in its main trade partner countries - China (down to 8.2% from 8.8%), Russia (3.6% from 3.7%) and Kazakhstan (6% from 6.5%).
"The government and the National Bank will work together to minimize the impact of risk factors and to establish a competitive banking sector, which meets the strategic interests of the economy. The measures implemented by the government and the National Bank should ensure a qualitative improvement in lending terms, steady and sustainable development of the domestic market and provide a solid foundation for balanced economic growth," the statement says.
Kyrgyzstan needs to draft necessary changes to legislation in 2013, especially concerning customs, for entry into the Customs Union.
The National Statistics Committee reports that GDP slid 0.9% in 2012, which the authorities attributed to a drop in production at the country's biggest gold ore deposit Kumtor, which provides about 10% of GDP. The government forecast a 1.8% drop in GDP for 2012. Production at the deposit was hindered by ice movement.
