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IMF reduces estimates of Kyrgyzstan’s economy growth due to border situation

The International Monetary Fund decreasingly revised the estimates for the growth of the economy of Kyrgyzstan because of the situation on the border with Kazakhstan. The head of the mission of the International Monetary Fund, Edward Gemayel, announced today at a press conference following the visit to the Kyrgyz Republic.

According to him, the financial institution forecasts the growth of the economy of Kyrgyzstan at the end of 2017 at the level of 3.2 percent. The forecast was reduced by 0.3 percent due to the difficulties that arose in early October on the Kyrgyz-Kazakh border.

We revised our forecasts decreasingly due to the tense situation at the border and the slow pace of trade between the two countries.

Edward Gemayel

«Next year, we forecast GDP growth of about 3.3 percent. We did not make any assumptions about the situation on the border with Kyrgyzstan and Kazakhstan. We assume that the problem will be solved by the end of this year. If this does not happen, we will revise our forecasts during the next visit,» Edward Gemayel said.

As for the inflation forecast, it is expected that it will remain under control. By the end of the year, it will reach 3 percent and rise to 5.5 percent next year. In any case, inflation will remain close to the target range set by the National Bank of Kyrgyzstan.