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Eurasian Development Bank lowers economic growth outlook for Kyrgyzstan

The Eurasian Development Bank lowered the forecast for the growth of the economy in Kyrgyzstan by 0.8 percent — from 4.2 to 3.4 percent. The EDB’s macroeconomic survey says.

In addition, taking into account the weak price demand in the regional food markets and the stable exchange rate, the inflation forecast was also revised downward.

According to the updated estimates, the growth of consumer prices will remain weak until the end of 2018 and will amount to 3.8 percent.

In 2019, the price increase will accelerate to 5.7 percent, and in 2020 — by 6.3 percent.

The economy will grow slower. Following the results of 2018, GDP growth is forecasted at 3.5 percent, in 2019 — 3.9 percent, in 2020 — 3.7 percent.

«Due to the emergence of new risks, more restrained forecasts for economic growth have been formed in the countries — the main trade partners of Kyrgyzstan. Among the domestic factors, the decline in gold production will contribute to a slowdown in GDP growth in 2018. In the medium term, domestic demand and fiscal policy measures will support the economy,» the report says.