Eurasian Economists Association

International Conference on Eurasian Economies

12-14 October 2011 – Bishkek, KYRGYZSTAN

Paper detail

Paper ID : 239
Status : Paper published
Language : Turkish
Topic : International Trade and Globalization
Presenter: Prof. Dr. S. Rıdvan Karluk
Session : 1C Uluslararası Ticaret

Effects of Global Economic Crisis on Kyrgyzstan Economy and Developments in Economic Relations between Turkey and Kyrgyzstan
Küresel Krizin Kırgızistan Ekonomisine Etkisi ve Türkiye Kırgızistan Ekonomik İlişkilerindeki Gelişmeler

Abstract

The global crisis which started in September 2008 adversely affected many global economies and also Kyrgyzstan economy. Kyrgyzstan economy which declined and experienced a severe recession in 2009 due to the crisis started recovering from the adverse effects of the crisis after 2010. What lie beneath this positive development is increased foreign exchange revenues abroad and vigor experienced in construction industry and industrial production. The recovery experienced in economies of Russia and neighbor Kazakhstan resulted in increased exports and thus increased revenues in foreign currencies obtained from foreign countries. The political disturbances experienced in Bishkek in April 2011 and ethnic conflicts experienced in southern Kyrgyzstan in June 2011, created an adverse effect on the economy. The crisis resulted in degradation of investment environment, adversely influenced the foreign investments and increased the current account deficit. These developments adversely influenced the banking sector too. The government attempted to diminish effects of the crisis through financial incentives. The budget deficit emerged as a result of crisis was attempted to be closed through support secured from International Monetary Fund (IMF). IMF, World Bank and Asian Development Bank lent great support to invigorating Kyrgyzstan economy after events of April and July. According to IMF, if political instability goes on in Kyrgyzstan in medium and long term, economic problems shall continue. Uncertainties in banking sector are amongst the main factors which increase the economic risks. Recovery of Kyrgyzstan economy is dependent on medium term financial policy measures to be applied to the economy and balancing the foreign trade.

JEL codes: F15

Karluk, S. Rıdvan (2011). "Effects of Global Economic Crisis on Kyrgyzstan Economy and Developments in Economic Relations between Turkey and Kyrgyzstan" in Proceedings of International Conference of Eurasian Economies 2011, pp.47-56, Bishkek, KYRGYZSTAN.

DOI: https://doi.org/10.36880/C02.00239

Full paper in PDF format.

Session 1C: Uluslararası Ticaret

Beykent University Kyrgyzstan-Turkey Manas University Promotion Fund of the Turkish Prime Ministry Turkish Central Bank