one-half of some harvests. In 2002, agriculture accounted for 35.6% of GDP and about half of employment. Kyrgyzstan's terrain is mountainous, which accommodates livestock raising, the largest agricultural activity, so the resulting wool, meat and dairy products are major commodities. Main crops include wheat, sugar beets, potatoes, cotton, tobacco, vegetables, and fruit. As the prices of imported agrichemicals and petroleum are so high, much farming is being done by hand and by horse, as it was generations ago. Agricultural processing is a key component of the industrial economy as well as one of the most attractive sectors for foreign investment.
Kyrgyzstan is rich in mineral resources but has negligible petroleum and natural gas reserves; it imports petroleum and gas. Among its mineral reserves are substantial deposits of coal, gold, uranium, antimony, and other valuable metals. Metallurgy is an important industry, and the government hopes to attract foreign investment in this field. The government has actively encouraged foreign involvement in extracting and processing gold. The country's plentiful water resources and mountainous terrain enable it to produce and export large quantities of hydroelectric energy.
On a local level, the economy is primarily kiosk in nature. A large amount of local commerce occurs at bazaars and small village kiosks in country regions. A significant amount of trade is unregulated. There is also a scarcity of common everyday consumer items in remote villages. Thus a large number of homes are quite self-sufficient with respect to food production. There is a distinct differentiation between urban and rural economies.
The principal exports are nonferrous metals and minerals, woolen goods and other agricultural products, electric energy and certain engineering goods. Imports include petroleum and natural gas, ferrous metals, chemicals, most machinery, wood and paper products, some foods and some construction materials
