BAKU, Azerbaijan, May 10. Kyrgyzstan’s GDP growth is expected at 1 percent in 2022, Trend reports via Regional Economic Prospects from the European Bank for Reconstruction and Development (EBRD).
According to EBRD, Kyrgyzstan’s economy expanded by 3.6 percent in 2021 despite a major drop in gold exports. A near doubling of imports in the first two months of 2022, was by 91.3 percent year-on-year.
The present forecast remained constant compared to the estimates from March 2022 when the Bank predicted Kyrgyzstan’s GDP growth at 1 percent.
"Accompanied by a new tax code mandating the use of cash registers at all points of sale, this reform is likely to help the authorities clamp down on shadow economic activities, thus contributing to public revenues, leveling the playing field for companies operating in the formal economy, and creating incentives for investment in manufacturing," said the report.
However, a further escalation of the geopolitical crisis is likely to put more pressure on the country’s national currency and balance of payments given the large share of imports in energy, intermediary and consumer goods.
"The economy is projected to grow at 1 percent in 2022, and 4 percent in 2023, subject to strong downside risks," said the report.