Kyrgyzstan's Economic Growth To Slow In 2023, Recover Slightly In 2024 - ADB


(MENAFN- AzerNews) The Kyrgyz Republic's Economy is projected to grow more slowly in 2023 due to a slowdown in Gold production and the impact of unfavorable weather on agriculture, despite strong performance of services, according to a new Asian Development bank (ADB) report, Azernews reports, citing Kabar.

The Asian Development Outlook (ADO) September 2023 projects the Kyrgyz Republic's gross domestic product (GDP) growth rate to be 3.8% in 2023, lower than ADB's previous forecast of 4.5%, on the back of slower-than-expected growth in the first 7 months of the year. The Central Asian nation's economic growth is expected to accelerate slightly to 4% in 2024.

“The outlook remains subject to heightened uncertainty and downside risks from a net reversal of capital flows, lower than projected economic growth in the Russian Federation, lower remittances, or secondary sanctions," said ADB Country Director for Kyrgyz Republic Zheng Wu. "In this context, policy reforms must continue to raise the country's growth potential and build resilience to future shocks.”

Inflation subsided in the first 7 months of 2023 as global food and energy prices began to decline. Projected annual inflation remains at 12% for 2023 and is expected to decelerate to 8.6% in 2024.

This year, ADB launched a new 5-year country partnership strategy (CPS) for the Kyrgyz Republic to support the country's development priorities by fostering inclusive, resilient, and private sector-led growth. Since the Kyrgyz Republic joined ADB in 1994, the bank has committed 208 public sector loans, grants, and technical assistance totaling $2.5 billion to the country.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.

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AzerNews

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