Industries:small machinery, textiles, food processing, cement, shoes, sawn logs, refrigerators, furniture, electric motors, gold, rare earth metals

Exports - commodities: cotton, wool, meat, tobacco; gold, mercury, uranium, natural gas, hydropower; machinery; shoes

The industrialization of Kyrgyzstan began in the 1930’s with the production of heavy agricultural machinery, electric motors, light manufacturing, and mining. Before that textiles and leather goods constituted Kyrgyzstan's main industry. During World War Two, Kyrgyzstan benefited from the Soviets’ movement of their heavy industry from the European theater to the East. Some of this industry was placed in Kyrgyzstan and later formed the basis of the industrialization of the republic. Soon after, Bishkek, Aksu, and Tokmak received more military-related industrial plants and factories from the European part of the Union. Before long, the republic became a major contributor to engineering, instrument-making, non-ferrous metal manufacturing, and coal-mining. With the increase in expertise, the volume of Kyrgyz industry increased, boosting industrial production manifold.

In the 1980’s, the Soviet Union was heavily involved in Afghanistan. Much of the funds that, thus far, had been allotted to the agriculture and industry of the republics was funneled to the war front. Consequently, the republics were no longer receiving the subsidies that helped them manage their industries. Without the vital subsidies from Moscow, Kyrgyz industry began to decline.

It should be noted that at its height, the republic’s industry that was centered on mining, processed uranium, antimony, mercury, and molybednum contributed a great deal to the economy of the Soviet Union. Kyrgyz light industry produced textiles, clothing, and footwear, while the agricultural sector produced cotton, silk, fruits, and vegetables. Automobiles, tractors, electrical equipment, furniture, timber, cement, and prefabricated cement walls were among the major industrial products of the country. It should be noted tht goods manufactured in Kyrgyzstan are of poor quality. They are not fit for export. The country is poor, so it cannot invest in technology to bring its industry up to par with the rest of the world or to create trade relations at an international level.

One of the major contributors to Kyrgyz economy is hydroelectric power generated by the Togtogul, Uchqurqan, and Qumqasoi hydroelectric stations on the Naryn River. They produce not only most of the energy needs of the republic, but also much surplus energy for export to neighboring countries.

The economy is heavily weighted toward gold export and a drop in output at the main Kumtor gold mine sparked a 0.5% decline in GDP in 2002 and a 0.6% decline in 2005. GDP grew more than 6% in 2007, partly due to higher gold prices internationally.

Agriculture, Kyrgyz Republic’s leading industry, is the source of the over one-third of the Kyrgyz gross domestic product. Major components of the Kyrgyz agricultural industry are livestock breeding (meat, dairy and wool production) as well as tobacco, cotton and industrial crops production, gardening, beekeeping and vegetable growing. Kyrgyzstan fully covers its foodstuff needs and exports food to Kazakhstan and Russia.

The industry of the Kyrgyz Republic, which produces over 20% of GDP, consists of processing industry, non-ferrous metallurgy and mineral resources industry.

The “Kumtor” gold-mining project (a joint venture with “Kameko” Canada) is one of the most significant commercial ventures in the Kyrgyz Republic. This enterprise generates nearly 35% of the country’s total exports and is responsible for generating approximately one-tenth of the domestic production. Kyrgyz Republic is the third among other CIS countries for gold-mining output.

Strong hydro-energy complex is possibly the nation’s greatest heritage from the Soviet Union. The country’s hydro-energy infrastructure is the second largest source of Kyrgyz exports. To underscore the importance of this industry, it should be noted that the cumulative hydro-energetic reserves of the Kyrgyz rivers exceed those of the famous Russian Volga river by several hundred percent. Kyrgyzstan exports electricity to Russia (over 1.5 billion kW annually) as well as to neighbouring Kazakhstan, Uzbekistan, Tajikistan and China. Hydro-energy complex secures the excellent perspectives to replace the import of energy resources as the 75-100 thousand tons of oil extracted in Kyrgyzstan annually cover only one third of the country’s need in energy.

The country has developed a sufficient environment for successful development. Kyrgyzstan has established a multi-structural economy and posses rich natural and highly competent human resources. The country’s strategic development plan is proved by the consistently increasing inflow of direct foreign investments, dynamically developing banking sector and the population confidence in financial institutions.






















































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