The World Bank predicts an economic slowdown in Kyrgyzstan due to the situation in Ukraine. Updated economic report of the bank says.
It is noted that the consequences of Russia’s invasion of Ukraine could negate the progress made by Kyrgyzstan in 2021, when GDP growth reached 3.6 percent.
According to World Bank forecasts, the economy may shrink by 5 percent by the end of 2022, and inflation could exceed 18 percent.
«This is mainly due to reduction in consumption and investment, a decrease in remittances. Growth is expected to recover to 3.2 percent in 2023 and to 4 percent in 2024 in case the situation stabilizes and investments continue to grow,» the bank says.
Experts emphasize that the country’s economy is still heavily dependent on gold mining, remittances of migrants and foreign aid.
Earlier, the Asian Development Bank noted in its Asia Development Outlook 2022 that it expects the economy of Kyrgyzstan to slow down to 2 percent this year «due to economic sanctions imposed against Russia, the main trading partner of the republic.»
