CAP Kyrgyzstan Macroeconomic Indicators increase in July

The Central Asia Prospect Kyrgyzstan Macroeconomic Indicators Up Again in July Reading

News Release

For Further Information:

Dr. Gary Roseman  

groseman@centralasiaprospect.com

For Immediate Release, July 27, 2014

CAP KMI Index increases in July

Economic data from Kyrgyzstan continue to show a positive macroeconomic environment in the Central Asian democracy and generate an increase in the Central Asia Prospect Index of Kyrgyzstan Macroeconomic Indicators (CAP KMI Index). The current reading of the Index is 117.2, up from 116.5 for the June reading (October 2013 = 100).  

The four variables used to calculate the CAP KMI Index are 1.) monthly GDP growth rate, 2.) changes in deposits at commercial banks, 3.) changes in international reserves at the National Bank (central bank), and 4.) the stability of the som/dollar exchange rate.  A composite of these variables showed an improving business environment in Kyrgyzstan at the latest reading, which for July 2014 comes from May 2014 data.  

The May 2014 GDP growth rate continued, according to the Ministry of Economics, with construction playing the leading role.  Deposits at commercial banks in the country in May decreased 3.43 percent from the levels in April 2014, nearly erasing the gain from March to April.  International reserves at the National Bank increased again, by 1.8 percent from April to May, continuing the increase seen in previous months and reversing the decrease in late winter following the depreciation of the ruble and tenge.  This is consistent with the recovered steadiness in the exchange rate of the som, which stabilized at an average of 1.90 US cents in May, down 0.062 cents from April, after the slight volatility at the time of the depreciations of the currencies of trading partners in the winter.