Index of Kyrgyz Macroeconomic Indicators in September

The Central Asia Prospect Kyrgyzstan Macroeconomic Indicators Index

News Release

For Further Information:

Dr. Gary Roseman  

groseman@centralasiaprospect.com

For Immediate Release, September 26, 2015

Increase in the CAP KMI Index in September

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 136.3, up 1.9 from the August 2015 reading (October 2013 = 100), as GDP growth continued, along with increases in international reserves and banking deposits, and manageable exchange rate for the som.

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 comes from July 2015 data.  

GDP growth continued, led by manufacturing. Deposits at commercial banks in the country increased by 3.5 percent from the June level. International reserves at the National Bank decreased by 3.54 percent from the previous month as the som depreciated 3.5 percent to an average for the month of 62.15 soms to the dollar (1.61 US cents per som) from an average of 60 soms to the dollar (1.67 US cents per som) in the month of June. Volatility in the exchange rate for the month remained low. Outlook remains good though some deflationary pressures may be appearing.