Socio-political uncertainty affects economy of Kyrgyzstan

09:58, 27 ноября 2020, Bishkek - 24.kg news agency , Tatyana KUDRYAVTSEVA

Increased social and political uncertainty had an additional negative impact on the economic situation in Kyrgyzstan. Macroeconomic Outlook for 2021: Entering the Growth Phase by the Eurasian Development Bank says.

Economic activity in Kyrgyzstan in the fourth quarter remains weak. Consumer and investment demand is limited by the weakness of foreign economic activity, partial closure of the borders with China, consequences of previously introduced quarantine measures, and suspension of investment projects. The gold mining sector is also expected to contribute negatively to 2020 GDP dynamics.

«According to the baseline scenario of the EDB forecast, the GDP of Kyrgyzstan will grow by 3.7 percent in 2021, and by 5.1 percent in 2022. As the situation in the global economy stabilizes and business activity intensifies in key countries — trading partners (Russia, Kazakhstan, China), the economy of Kyrgyzstan will recover. Resumption of remittance inflows will help bolster domestic consumer demand. At the same time, the decline in gold production at Kumtor mine will restrain the growth dynamics,» the outlook says.