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Inflation in Kyrgyzstan to reach 10 percent by the end of 2021

The Asian Development Bank predicts that inflation will reach 10 percent in Kyrgyzstan in 2021. The Asian Development Outlook 2021 Update report says.

The bank notes that food price inflation remains high. This is because slow recovery of the supply chains. The passive impact of a 20 percent depreciation of the currency to the U.S. dollar in 2020 continues, given the persistent and rapid rise in food prices.

Inflation is expected to slow down to 7 percent in 2022. The ADB also stresses that in the first quarter of 2021, the current account deficit in Kyrgyzstan amounted to 4.6 percent of the gross domestic product. Export decreased by 9.5 percent, mainly due to a reduction in exports of gold and other metals. Growth in import of machinery and equipment, clothing and sugar increased total imports by 40.2 percent.