Inflow Of Foreign Direct Investments To Kyrgyzstan Decreases
Date
10/5/2023 3:09:51 PM
(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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