BAKU, Azerbaijan, July 25. Since February 2022, most Central Asian firms reported an increase in production costs, Trend reports citing the World Bank (WB).
According to the WB's survey, 65 percent of firms in Kyrgyzstan, Tajikistan and Uzbekistan faced increasing production costs, with the biggest cost hikes widespread among Kyrgyz firms given their source more inputs from Russia.
"Overall, 43 percent of surveyed companies indicated that either import from Russia or Ukraine has decreased or that they have stopped sourcing from these countries altogether," the WB stated.
Moreover, they have struggled with accessing new credit financing. About a quarter of the surveyed firms were under strain, needing to adjust their credit and reduce their debt burden.
To sum up, most Kyrgyz, Tajik and Uzbek companies are experiencing economic pressure due to their rising production costs and deteriorating credit access, which may slow economic growth and lead to job losses.