The Kyrgyz Republic's economy grew by 3.5% in 2018, slower than the previous year due to issues at a gold mine and stable growth in other sectors. Household incomes were unstable, leading to fluctuating domestic demand. Inflation was affected by low food prices globally. The state budget deficit decreased, mainly from lower spending and higher revenues. Public debt decreased due to an agreement with Russia. The National Bank lowered interest rates due to low inflation. Economic activity is expected to pick up in 2019, driven by gold production and public sector demand. Inflation will depend on world food prices, which are predicted to rise by early 2020.