|Language||Kyrgyz (state), Russian (official)|
|Religion||Islam (88%), Christianity (11.5%)|
|State system||presidential republic|
|Head of State||Sadyr Zaparov|
|Head of government||Akylbek Zaparov|
|Currency name||Kyrgyz Som|
|Time shift||+5 hours (in summer +4 hours)|
|Nominal GDP (billion USD)||7.7|
|Economic growth (%)||3.6|
Kyrgyzstan is a landlocked, mountainous country in Central Asia. It represents the second poorest country from the former republics of the USSR. Its economy is based primarily on gold mining, remittances and foreign development aid.
It is a presidential republic, which was confirmed by the approval of constitutional changes in the referendum held on 11 April 2021. The president of Kyrgyzstan is Sadyr Žaparov from January 2021. Parliamentary elections in November 2021 ended with the victory of pro-presidential parties and completed the transition to a centralized form of government. Check ebizdir for economical facts of Kyrgyzstan.
Trade exchange with the Czech Republic is low, which causes significant fluctuations in its structure. The main opportunities for Czech exporters are participation in development projects, especially in the field of water management or renewable energy sources financed from abroad. Other opportunities are technology supplies for foreign investors, e.g. in the mining sector. Other areas of cooperation are also developing, e.g. in the agricultural sector. The main limiting factor is the chronic lack of funds.
This territorial information is processed for the country that is so-called accredited. The information is provided in a basic scope.
- Basic data
- Public finances and the state budget
- Banking system
- Tax system
In terms of total GDP, the Kyrgyz Republic is the smallest economy among the CIS countries and, after Tajikistan, it also has the lowest GDP per capita. In recent years, the country’s GDP has risen by 4-5% annually, but in 2020 it fell by 8.6%. In 2021, it increases again by 3.6%. A significant part of government income is income from gold mining in the Kumtor mine, which accounts for about 1/3 of industrial production and 40% of exports. Inflation fluctuates strongly between 2 and 12%, mainly according to the development of the local currency exchange rate. Unemployment is below 10%, but this is due to the fact that a significant part of the population works abroad and the payments they send to KG constitute a significant income of KG households. Approximately million Kyrgyz citizens work abroad, with transfers of funds from KG citizens from abroad (remittances) amounting to approximately 30% of GDP.
Table from MOP + additionally balance of payments, indebtedness/GDP.
|GDP growth (%)||4.5||-8.6||3.6||4.2||4.1|
|Export of goods (billion USD)||2||1.8||2.5||2.6||2.7|
|Import of goods (billion USD)||5||3||5.5||6.3||6.9|
|Trade Balance (Billion USD)||-2.6||-1.4||-2.6||-3.2||-3.6|
|Industrial production (% change)||6.9||-1||7,8||6||6|
|OECD export risk||7/7||7/7||7/7||7/7||ON|
Source: EIU, OECD, IMD, stat.kg, Worldbank
Public finance and state budget
|State budget balance (% of GDP)||1.6|
|Public debt (% of GDP)||57.4|
|Current account balance (billion USD)||-0.7|
Public revenues have been around 30% of GDP for the past few years. Last year, in contrast to previous years, the revenues of the state budget showed a slight positive balance.
Kyrgyzstan receives loans both from international organizations and from individual states. These are mainly the IMF, EBRD, Asian Development Bank, ESCAP, US Trade and Development Program, as well as Japan, Switzerland, Turkey, Germany, etc. Foreign debt is around 8.9 billion USD. Half of KG’s foreign debt consists of loans in the field of transport and energy. The largest creditors include China, the Asian Development Bank and the World Bank Group. Russia gradually wrote off its debts. In connection with the deterioration of the state budget situation in connection with the pandemic, the country is having problems repaying earlier loans. The balance of payments is balanced by payments from KG citizens working abroad.
There are 23 commercial banks operating in Kyrgyzstan, 16 of which were dominated by foreign capital. The total assets of the banking sector in Kyrgyzstan reached 36billion soms at the end of 2021 (at the end of 2020 – 289.3 billion soms). Among the main banks in the Kyrgyz market in terms of the size of financial assets are Optima bank, Ajyl Bank and KICB (Kyrgyz Investment and Credit Bank).
A new tax code is effective in Kyrgyzstan from 1 January 2022. Its purpose is to ensure the optimization of tax administration, ensure the stability of the tax system, improve the digitization of the tax area, create transparent conditions for business and limit the shadow economy.
Kyrgyzstan’s tax system includes several types of taxes – VAT, income tax, profit tax, acquisition tax, tax on the use of natural resources, sales tax, land tax and property tax.
The amount of income tax in general is 10% for natural and legal persons. There are exceptions to this rate for certain subjects, e.g. in the case of legal entities doing business in the field of gold mining, its amount is 0%.
The standard VAT rate is 12%. VAT is charged for most goods and services, including those that are provided free of charge. VAT is not applied in case of import of goods from countries that are members of the EAEU.
Kyrgyzstan has concluded agreements to avoid double taxation with 28 countries, which include, for example, Russia, Kazakhstan, Belarus and Uzbekistan. On November 30, 2020, the double taxation agreement between the Czech Republic and Kyrgyzstan entered into force.