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Expert predicts protracted economic crisis in Kyrgyzstan

«There is a catastrophic structural breakdown of the model in which we got used to live in Kyrgyzstan,» an economist Azamat Akeneev said during an online conference today.

According to him, a complete halt of entire sectors of the economy has already been registered as of today. «More than 1 million people do not work. It does not depend on the economy how long the situation will last. This contributes to uncertainty. Therefore, we can only hope that the measures taken by the government will reduce the period when business is simply forbidden to work,» the expert said.

But even if the situation is resolved in the next couple of months, this does not mean that the economy will recover. Already now we can say that the crisis period will be protracted.

Azamat Akeneev

According to him, this is due to the fact that the current crisis associated with coronavirus coincided with the global one.

«I would like to dispel the myth that has firmly rooted in society that Kyrgyzstan should not be afraid of crises. Countries like Kyrgyzstan will suffer the most. We have no reserves and the economy remains highly dependent on external factors. The structure of the economy is strongly tied to small and medium-sized businesses. And the global crisis, which is associated with the limitation of production, will hit this industry most severely. Therefore, the realistic goal of our government should be to ensure the crisis not to enter a phase where business is simply going bankrupt. After all, such a crisis can last for years. Losses are inevitable, but we need to help businesses survive this period,» the expert stressed.

Recall, the First Deputy Prime Minister of Kyrgyzstan Kubatbek Boronov said that it was proposed to extend the quarantine in Kyrgyzstan for two weeks — until the end of April.

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