Kyrgyzstan’s economy will grow at a slower pace this year due to a slowdown in gold production and the impact of unfavorable weather conditions on agriculture, despite the high performance of the services sector. The next Asian Development Review says.
The growth rate of gross domestic product of the Kyrgyz Republic will be 3.8 percent in 2023, down from ADB’s previous forecast of 4.5 percent due to slower-than-expected growth in the first seven months of this year. The economic growth rate is expected to accelerate slightly to 4 percent in 2024.
«The outlook remains subject to heightened uncertainty and downside risks stemming from capital outflows as well as lower-than-forecast economic growth in the Russian Federation, reduced remittances or the risk of secondary sanctions. In this context, policy reforms need to be pursued to enhance the country’s growth potential and build resilience to future shocks,» Zheng Wu, ADB’s Country Director for Kyrgyzstan, said.
The ADB noted that inflation declined in the first seven months of 2023 as global food and energy prices began to fall. Projected annual inflation in 2023 will remain at 12 percent and is expected to fall to 8.6 percent in 2024.
