BAKU, Azerbaijan, April 6. Kyrgyzstan’s GDP growth in 2023 is expected to moderate to 3.5 percent as gold production contracts and agriculture and the services sector experience a slowdown, Trend reports citing Europe and Central Asia Economic Update of the World Bank.
At the same time, the bank forecasts Kyrgyzstan's GDP growth at 4 percent in 2024 and 2025.
According to the bank, economic growth in 2022 reached 7 percent which was stronger than initially expected, driven by consumption, supported by remittance inflows, largely from Russia, and public investment.
The WB believes that a rapid growth was driven by gold production, agriculture, and the services sector. The latter was supported by trade-related services and additional demand boosted by the relocation of Russian citizens to Kyrgyzstan.
On the demand side, growth was supported by private consumption, with gross remittance inflows increasing by 6.2 percent, and public investment.
The bank noted that Kyrgyzstan has experienced volatile growth in the past decade because of heavy dependency on gold production and remittances.
“On average, gold production accounts for 10 percent of GDP and remittances 25 percent of GDP, while development assistance amounts to about 5 percent of GDP,” the report said.