The situation in the economy, on the background of the ongoing world financial and economic crisis remains unstable with some major negative trends took place in the previous year. The GDP growth made 2,3% , which is less for 6,1% than in 2008. Volume of production in industrial sector reduced for 21,5 %. The economic’s growth is based on account of agriculture, construction, service sector indicators. Conducting of strong monetary and credit policy let drastically reduce the inflation rates from 25% in 2008. The negative trade balance remains very high has widened approaching USD 1.38 billion (January-October 2009). The country has a high level of shadow (informal) economy, up to 60 percent of the GDP according to the various estimations. Although overall inflation was low in 2009, sharp price increases the year before and ongoing inflation in food and energy prices threaten to push many back into poverty.

Because of the world finance and economic crisis, in the end of 2008 and 2009, the country has received external aid, unprecedented in scale and scope in the country’s history, from the UN, IMF, WB, ADB, the EC and Russia as grants or soft loans.  In 2009 Kyrgyzstan received more than $100 million from the IMF, $150 million from Russia for budget support, and soft loans of $300 million for economic development. The volume of the Kyrgyz external debt is still high, exceeding USD 2.5 billion at the end of 2009. 

At the same time the Government made decisions for large increases of pensions, allowances and salaries in the budget sphere on the eve of elections perhaps politically motivated but overdue. According to expert evaluations the pensions and allowances increased for 2-2,5 times in the last four years. It is expected that this policy will continue in 2010. The general poverty level has been reduced in 2008 by 4,3% (in 2007 – 35% -latest official statistical data). According to Global HDR-2009, Kyrgyzstan dropped to 120th place in the Human Development Index (in 2007 and 2006 the figures were 116 and 110 respectively). In the Corruption Perceptions Index 2009 published by Transparency International, Kyrgyzstan was ranked 162th (in 2008 -166 out of 180 countries).

Key indicators of the Kyrgyz Republic, 2000-2009