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Import-dependent industries to benefit from regional economic recovery

«Import-dependent industries such as manufacturing, construction and mining will benefit from recovery of the regional economy and boost Kyrgyzstan’s growth,» Kanokpan Lao-Araya, Director of the Asian Development Bank’s office in the Kyrgyz Republic, said. She presented a forecast for development of the republic.

The growth of the economy of Kyrgyzstan by the end of 2021 is planned at 3.5 percent, and in 2022 — 5 percent. Healthy gold exports are projected to drive overall growth up to 5 percent in 2021 and 2022. Meanwhile, imports could rise by about 10 percent this and next year, as delayed infrastructure projects are expected to resume. Remittances are likely to further increase by about 5 percent over the same period, subject to economic recovery in Central Asia and especially in the Russian Federation.

«While we are cautiously optimistic about growth, much will depend on the recovery of countries in Central Asia as a whole,» Kanokpan Lao-Araya said.

To improve social protection and stabilize the economy as COVID-19 declines, it is recommended to integrate workers who became unemployed during the pandemic and returning migrants into the economy. The report calls on to improve the social protection database in line with key demographics, promptly check assistance applications and provide support.

Last year, ADB approved allocation of $ 70 million to Kyrgyzstan to support COVID-19 response. This amount includes a $ 50 million loan and grant package approved in May and a $ 20 million emergency aid package to help the government strengthen the health sector, approved in June.