Kyrgyzstan's economy shrank by 1.7% y/y in the first half of 2021, significantly improving from the 5.3% y/y contraction recorded in the same period last year, according to latest data released by the country's National Statistical Committee.
The coronavirus (COVID-19) outbreak in Kyrgyzstan and the government’s measures to contain it led to a surge in joblessness and the country's GDP contracted by 8.6% in 2020 overall. The United Nations Development Programme (UNDP), the Asian Development Bank (ADB) and the Kyrgyz Economic Policy Research Institute have predicted a 25% decline in much needed remittance inflows will have to be pencilled in, with an unemployment level of 21%. Income from tourism and travel services was expected to drop by 90% y/y in 2020. The current path of contraction suggests, however, that Kyrgyzstan might be moving towards an economic recovery.
Without accounting for production at the Kumtor flagship gold mine, GDP grew by 3.7% in January-June, compared with a 7.3% contraction in January-June 2020.
The overall volume of production in the Kyrgyz mining sector grew by 2.1% in the six-month period.