Kyrgyzstan's economy depends on the situation in Russia, Kazakhstan and China, the Kyrgyz National Bank's report on 'Stability of the financial sector of the Kyrgyz Republic', published on its website said, KyrTAG reported today.
'Kyrgyzstan is a small open economy vulnerable to shocks from the global markets, especially those concerned with food and raw materials', the report said. 'Kyrgyzstan's economy is largely dependent on the economic situation in Russia, Kazakhstan, and China'.
The share of these three countries in Kyrgyzstan's total exports is 49.1 per cent, Kyrgyzstan's total imports 63.5 per cent, public external debt 29 per cent and the private non-guaranteed external debt is 39.2 per cent.
National Bank experts believe that the risk of Kyrgyzstan's food and energy security is increasing due to the continuing trend of Kyrgyz economy's increased dependence on the socio-economic conditions of its main trading partners. The slowdown in the global economic growth rates, dependence on the situation on world markets, the debt crisis in the euro zone, as well as the growth of credit risk are now the main risks to the growth of Russian, Kazakh and Chinese economies.
Moreover, experts believe that the prospect associated with the Kyrgyz Republic's joining the Customs Union and the reduction of re-exports of goods through Kyrgyzstan to the Customs Union countries may have a significant impact on the vulnerability and the development of the banking sector.