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World Nomad Games may lead to budget deficit in Kyrgyzstan

«Taking into account that the World Nomad Games are planned to be held in 2018, we should expect that there will be a deficit of the state budget in the second half of the year,» the monthly macroeconomic review of the Eurasian Development Bank says.

It was noted that the slowdown in economic growth in the republic was due to the reduction in gold production. At the same time, the weak price environment in the world meat and sugar markets and the regional grain market supports deflationary processes in the domestic food market. According to the experts, in the absence of additional shocks in the medium term, inflation will not exceed 5-7 percent by the end of 2018.

«In January-April 2018, the state budget was met with a surplus of 1.2 percent to GDP. The revenue part of the budget grew by 11.6 percent. And the expenditure part (including the purchase of non-financial assets) decreased by 2.3 percent. Considering that the World Nomad Games are planned this year, we should expect that there will be a budget deficit in the second half of the year,» the analysts of the Eurasian Development Bank summed up.

The National Bank of Kyrgyzstan has lowered by 2.3% the forecast for GDP growth in Kyrgyzstan in 2018. It came to the conclusion that in 2018 the real GDP growth was expected to be about 3.2 percent, excluding Kumtor enterprises — about 4.2 percent.