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Prices in Kyrgyzstan to grow more than economy at year-end

At the end of 2018, inflation in Kyrgyzstan is expected to be at the level of 4 percent, while GDP growth is forecasted at 3.5 percent. The new annual report of the Asian Development Bank, published today, says.

In 2019, inflation in Kyrgyzstan will increase to 4.5 percent and the prices and tariffs will continue to rise. The budget deficit will decrease to 2.5 percent of GDP in 2018 and 2019, as the government restrains spending and improves tax policy and tax administration.

Tax revenues to the budget of Kyrgyzstan can grow if the accession to the Eurasian Economic Union brings more customs revenues than is currently forecasted.

«Inflation can be higher if further depreciation of currencies in Kazakhstan and Russia leads to weakening of som,» the report says.

The ADB noted that the monetary policy of the National Bank of Kyrgyzstan is likely to focus on maintaining price stability in connection with the expected inflation increase.