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The Central Asia Prospect Kyrgyzstan Macroeconomic Indicators Index Increases
CAP KMI increases in the June reading, showing continued favorable macroeconomic conditions
The four variables used to calculate the Central Asia Prospect Index of Kyrgyzstan Macroeconomic Indicators (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 June 2014 comes from April 2014 data. The current reading of the Index is 116.5, up from 113.1 in April (October 2013 = 100). No variables negatively affected the Index for this reading.
The April 2014 GDP growth rate continued steadily, according to the Ministry of Economics. Deposits at commercial banks in the country in March increased 3.75 percent from the levels in March 2014, up from slower growth in March and a half-percent decrease in February. This is a sign of continued confidence in the banking system. International reserves at the National Bank increased by over 1 percent, continuing the increase seen in March and continuing to reserve the decrease seen from February to March in the wake of 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 1.838 US cents in April, up 0.003 cents in March, after the slight volatility at the time of the depreciations of the currencies of trading partners in February.
Dr. Gary Roseman
Page Updated Last on: Jun 29, 2014