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Moody’s predicts 6 percent economic decline in Kyrgyzstan in 2020

Moody’s basic forecasts assume a sharp decline in the Kyrgyz economy — up to 6 percent by the end of 2020. Agency’s statement says.

It is noted that economic growth in the republic will recover in 2021, increasing by about 6 percent. The recovery is likely to be associated with the gradual lifting of restrictions related to the coronavirus, including the cross-border movement of goods, opening of international borders and normalization of economic activity.

Extraction of minerals, interrupted by protests in October, will resume by the spring of 2021.

In this economic environment, according to Moody’s estimates, the government’s debt burden will gradually decline, although it will remain high — about 64 percent of GDP — over the next 2-3 years. At the same time, the state debt will reach 68 percent of GDP by the end of 2020.