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Economy of Kyrgyzstan to shrink by 7.5 percent at year-end

Economic decline in Kyrgyzstan is estimated at 7.5 percent at year-end. Alexey Kuznetsov, head of the Country Analysis Center of the Eurasian Development Bank, announced today during a video conference.

According to him, the economies of Russia, Armenia, Kyrgyzstan and Tajikistan will reach the pre-crisis level only in two years. The exchange rate of som to the U.S. dollar will be 83.2 soms. According to EDB estimates, the pre-crisis level of GDP (Q4 2019) will only be reached at the beginning of 2022. The negative output gap will gradually decrease throughout the forecast period that indicates that the economy is functioning at a level below its potential.

In 2021, the GDP of the Kyrgyz Republic will grow by 3.7 percent.

«Inflation in the EDB countries will slow down, and the restrained domestic demand will no longer put pressure on the exchange rate and world food prices. It is expected at the level of 5.2 percent in Kyrgyzstan next year,» Aleksey Kuznetsov stressed.

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