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Protracted economic recovery to pre-crisis level expected in Kyrgyzstan

Protracted recovery of economy to the pre-crisis levels is expected in Kyrgyzstan amid the pandemic and social and political phenomena. Aigul Berdigulova, a Senior Analyst at the Country Analysis Center of the Eurasian Development Bank, said.

According to her, the economic growth will still be positive — 3.9 percent. It will be driven by easing of restrictions on cross-border movements.

«We assume that functioning of the checkpoints will be resumed. This will support export-oriented sectors of the economy. Increased flow of remittances will play an important role in supporting the economy progressively as economic activity in Russia recovers,» Aigul Berdigulova said.

The economic development of the republic will be limited by weak investment activity and predicted decline in gold production.

«Inflation will slow down and will amount to 7.3 percent by December 2021. It is currently influenced by the rise in world and regional food prices. We believe that the influence of this factor will decrease with the onset of the new agricultural year. Inflation will slow down towards the end of the year. According to our estimates, the exchange rate will be 84.9 soms for $ 1,» Aigul Berdigulova concluded.