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IMF forecasts 4% GDP drop in Kyrgyzstan in 2020

The International Monetary Fund predicts a 4 percent drop in Kyrgyzstan’s GDP in 2020. Regional Economic Outlook report of the International Monetary Fund says.

Already in 2021, the country’s economic growth will be the highest in the Caucasus and Central Asia region. According to experts of the IMF, it will reach 8 percent.

As a result of the current year, prices in the Kyrgyz Republic will grow by 10.6 percent.

An inflation slowdown should not be expected next year. Although its growth rate will slow down a little, it will still be quite high — 7.2 percent.

«Impact of imports from trading partners affected by coronavirus on the situation in the economy is high for both exporters and oil importers. About 35 percent of imports in the republic come from China. Uzbekistan imports more than 40 percent of its goods from the countries of Asia and Europe affected by the COVID-19 pandemic. Due to interruptions in the supply of goods, a decrease in tax revenues and jumps in domestic prices are observed (Kyrgyzstan, Tajikistan). A global recession in tourism will also contribute to growth curbing, especially in countries where tourism revenues account for a large percentage of GDP or exports (Armenia, Georgia, Kyrgyzstan),» the report says.