Kyrgyz official: Digital projects to contribute to GDP growth

By Azernews

By Kamila Aliyeva

At least 11 percent of the total GDP growth of the Eurasian Economic Union (EAEU) countries by 2025 is expected to be ensured through the implementation of digital projects and initiatives.

If the countries of the Union do not synchronize their efforts to implement the digital agenda, its contribution to GDP growth will be half of that.

This was stated by Kyrgyz First Deputy Prime Minister Tolkunbek Abdygulov at the international conference entitled "Results of the chairmanship of the Kyrgyz Republic in the Eurasian Economic Union: new vectors for the development of Eurasian integration within the framework of economies and security" held on September 26, KyrTag reported.

"Kyrgyzstan considers that deepening economic integration and lifting the barriers in mutual trade between the EAEU states is the main task within the framework of its chairmanship in the EAEU bodies in 2017. The activation of the investment policy, the signing of the agreement on the provision of pensions for workers and members of their families of the EAEU countries, the adoption of the strategy for the formation of the digital space, the liberalization of the services market of the Unified Energy System, the development of the concept for the formation of the Union’s Common Financial Market, the interaction in the field of transport and the implementation of a unified industrial policy are priority directions for the association," he said.

Abdygulov noted that since 2016, when Kyrgyzstan has become a full member of the Eurasian Economic Union, there is a tendency for the leveled economic development among the member states of the Union, despite the differences in economies’ scales.

"Thus, according to the results of the first half of 2017, the inflation rate in the EAEU countries stood at the level of 3.5-3.7 percent while in our republic this figure was 2.8 percent. At the same time, economic growth was restored in all EAEU member countries, as a result of which the trade indicators improved. The Union's development is based on three main goals: creating conditions for the stable development of the economies of the member states in order to improve the quality of life of the population, the comprehensive modernization, cooperation and competitiveness of national economies in the face of global challenges and the formation of a single market of goods, services, capital and labor resources," he stressed.

In his speech, First Deputy Prime Minister said that, within the framework of its chairmanship in the structures of the EAEU, the Kyrgyz Republic pays much attention to the issue of ensuring the free movement of labor resources in the countries of the Eurasian integration association.

"The next important step in this direction will be the entry into force of the Pensions Agreement in 2018. The agreement on the provision of pensions for the workers of the EAEU countries should become a landmark document that creates an equal environment for the workers of our countries. This means that the agreement’s entry into force will provide citizens of Kyrgyzstan and other EAEU countries with the right to create, maintain and realize pension rights acquired by them during their work in the countries of the Union. The document also provides for the solution of the issue of exporting pensions and accounting for the length of service acquired in another state that is a member of the integration association," he concluded.

Kyrgyzstan's economy advanced 3.8 percent year-on-year in 2016, compared to 3.5 percent growth a year earlier. Industrial output increased by 4.9 percent, driven by metal ores, manufacture of refined petroleum products, food products and production of precious metals.

In 2016, the GDP growth has reached 3.8 percent. The forecasts say that the real GDP growth of Kyrgyzstan will be 2.9 percent in 2017. The risks which can affect the GDP growth in 2017 are instability of the global economy, dependence of the economy on world prices for gold and energy resources, risks for increase of inflation due to the growth of food prices and others.

The Eurasian Economic Union is an international organization for regional economic integration. Its members are Russia, Kazakhstan, Belarus, Kyrgyzstan and Armenia.