13:01, 08 октября 2022, Bishkek - 24.kg news agency , Tatyana KUDRYAVTSEVA
The GDP growth of Kyrgyzstan in 2022 will reach 4 percent. October report of the World Bank (WB) contains such a forecast.
The WB notes that the economy has turned out to be more resilient to the consequences of Russia’s war in Ukraine than expected. At the same time, Kyrgyzstan is still heavily dependent on gold production, remittances and foreign aid. In addition, the country’s economy was hit hard by the COVID-19 pandemic in 2020, as GDP reduced by 8.4 percent.
«Significant political and governance upheavals have been also seen in the past two years. After changing the Constitution, the country returned to the presidential form of government, early parliamentary and presidential elections were held. Political uncertainty continues to hamper the government’s ability to implement reforms. The nationalization of the largest gold mine, Kumtor, has undermined investor confidence. New risks arose after the start of the Russian war in Ukraine and subsequent sanctions against the Russian Federation,» the bank’s report says.
The private sector is hampered by an excessive bureaucratic burden. Acceleration of economic growth will require solutions that contribute to the private sector growth, encourage increase in international trade, and improve the commercial sustainability of the energy sector.
It is expected that GDP growth in Kyrgyzstan in 2023 will remain at the level of 4 percent and will be 4.5 percent in 2024. But this will happen on the condition that the economy of Kyrgyzstan adapts to the spillover effect of anti-Russian sanctions.