From December 2021 to October 2024, households wellbeing in Kyrgyzstan gradually improved. Despite some decline in income since July 2024, more than 70 percent of households feel financially and food secure. The poverty rate remained stable at about 16 percent.
The economic situation and perception of government policy have also improved. The main problems, according to citizens, are unemployment and rising prices, the World Bank’s survey «Listening to the Kyrgyz Republic» says. Its results were presented by the organization’s leading economist, Aibek Ashirov.
Incomes
From July to October 2024, family incomes have not changed, but adjusted for inflation, according to Aibek Ashirov, there is an increase.
«Unlike previous years, there were periods of seasonal spikes in income from agriculture. But this year we do not see this growth. In general, considering the dynamics of inflation-adjusted income from December 2021, we see a growth in household income,» the economist said.
In the first half of 2024 incomes were driven by rising wages, amid declines in self-employment, agricultural, and remittance incomes. However, beginning in July, wage income experienced a significant decline, decreasing by 23 percent by October 2024. During the survey period, agricultural income continues to exhibit seasonal spikes, but shows an overall decline.
Remittances and migration
Remittance income levels are declining.
«The share of households with at least one migrant working abroad is decreasing. At the beginning of the survey, 14 percent of households had at least one family member or relative who was a migrant. In October, the figure fell to 8 percent,» he noted.
The intention to migrate has decreased significantly. If earlier about 13 percent of households planned for one of their family members to go to work in another country, now this figure has fallen to a record low of 1 percent.
In addition, if previously 64 percent of household expenses went on food, now more and more families have begun to spend money on improving their living conditions.
Savings
While cash remains the most preferred method for saving, recent trends indicate a rise in the number of bank accounts savings. At least 81 percent of respondents prefer to keep savings in soms, which makes it the most popular currency for savings.
Despite income stagnation in July-October, 2024, financial security continues to improve. Overall, the fraction of financially secure households increased from 33 percent to 75 percent.
«All those who answered these four questions positively fall into the blue graph. We see that the financial security of households is improving,» he noted.
Compared to 2023, the share of households that noted an improvement in their financial situation increased from 47 to 71 percent. The food security indicator has also improved significantly: the share of households provided with food doubled, increasing from 41 to 86 percent. Additionally, a steady decline in households selling assets or reducing consumption to meet financial needs from December 2021 to October 2024 was registered, indicating improved overall household’s stability over the period.
Main problems in the country
The main economic problems in the country remain lack of jobs and high prices. However, as inflation declined, the focus shifted from «prices» to «jobs.» Urban households initially ranked prices as their primary concern, with jobs as the second most significant issue, but by May 2024, their concerns had shifted to jobs. In contrast, rural households have predominantly identified jobs as their main concern over prices since November 2022.
Electricity issues continue to be a major concern. In rural areas, dissatisfaction with the quality of electricity services peaked at 80 percent in September 2023. in March 2024, 60 percent of rural and 46 percent of urban respondents reported experiencing electricity disruptions.
Furthermore, over 85 percent of households believe that government policies on energy and gas tariffs disproportionately benefit high-income households, which causes additional discontent among citizens.
