BAKU, Azerbaijan, March 14. The experts of the European Development Bank (the EDB) expect an acceleration in the inflation in Kyrgyzstan to be temporary and subdue in mid-spring, Trend reports citing the EDB.
The inflation growth in Kyrgyzstan amounted to 15.3 percent year-on-year in January 2023, which is an increase compared to 14.7 percent in December 2022.
According to the EDB, the accelerating inflation was mainly influenced by the increase in tariffs and prices. In order to stabilize the inflation expectations, the National Bank of Kyrgyzstan kept the refinancing rate at 13 percent.
Meanwhile, the GDP growth in Kyrgyzstan made up 4.8 percent year-on-year in January 2023. The EDB forecasts the country’s GDP growth to start slowing down and amount to 3.5 percent at the end of 2023.
Industrial production in Kyrgyzstan increased by 7.5 year-on-year in January 2023. The growth was induced by the increase in production of metal ore by 37.2 percent year-on-year, compared to a 12 percent decrease in 2022.
As the bank noted, the second cause for the industrial production growth is the increase in gold manufacturing, which ensured an increase of 1.9 p.p. in the industrial sector of Kyrgyzstan.
The bank also said that the positive effects of migration inflow still influenced Kyrgyzstan's economy, but would decrease throughout the year.
The Eurasian Development Bank is an international financial institution founded in 2006 and headquartered in Kazakhstan’s Almaty city. The bank carries out investment activities aimed at developing economies, as well as trade and economic relations in its member states.