Inflow Of Foreign Direct Investments To Kyrgyzstan Decreases


(MENAFN- AzerNews) The National Statistical Committee of Kyrgyzstan published data, according to which the inflow of foreign direct investment into Kyrgyzstan decreased by 31.7 percent in the first half of 2023. An economist Iskender Sharsheyev voiced the reasons for this situation, Azernews reports, citing 24 News Agency.

((The decline in foreign direct investment can be explained by several reasons, including, first of all, the lack of effective reforms and advancement in the doing business ranking, which could increase the attractiveness of Kyrgyzstan for investment. In addition, the reduction of investments from non-CIS countries, mainly Canada, China, Germany and Turkey in processing industry, and the complete withdrawal of Hungarian funding for the financial intermediation and insurance sectors have also had an impact. This has led to the fact that the Kyrgyz Republic has reduced investments in the priority sectors of the economy - mining and processing industry. To improve the investment climate in the country, effective reforms, stability and security, benefits and preferences for foreign investors are needed. We need reform of courts, integration of national arbitration legislation with British commercial law for international investors,)) he said.

((It should be taken into account that the Cabinet is taking measures to improve the investment climate, for example, tax holidays for five years for manufacturers of electric transport. But what will have the greatest impact on the growth of investment in Kyrgyzstan is an improved legal system, and an increase in the speed of local government response to land allocation. Not the last factor in the normalization of the situation will be the solution of infrastructure issues,)) Iskender Sharsheyev summed up.

The National Statistical Committee reported on the decline in foreign direct investment by 31.7 percent in the first six months. The inflow of foreign direct investment in the Kyrgyz Republic amounted to $429.1 million.

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AzerNews

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