EDB updates outlook for GDP growth in Kyrgyzstan

Kyrgyzstan Materials 5 June 2023 11:43 (UTC +04:00)
Alyona Pavlenko
Alyona Pavlenko
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BAKU, Azerbaijan, June 5. The EDB (Eurasian Development Bank) expects the GDP growth in Kyrgyzstan to reach 4.2 percent in 2023, Trend reports.

The bank revised the forecast upward by 0.7 p.p. from 3.5 percent predicted in the previous outlook of November 2022.

The analytics improved the forecast due to a range of factors, one of them being a surge in demand from non-residents in the end of 2022.

The bank also expects an increase in the export of goods from Kyrgyzstan to the EAEU (Eurasian Economic Union) countries.

The EDB analysts believe that business activity in the service sector will rise due to increased demand from non-residents, especially during the tourist season (in the second and the third quarter of 2023).

Economists forecast a 3.3 percent growth in gold production in 2023, which may contribute 0.2-0.4 percentage points to GDP growth.

At the same time, for 2024, the EDB predicts a decline in GDP growth to 4.1 percent, which is a slight decrease from the November report (4.2 percent), and 3.6 percent in 2025.

The National Bank of Kyrgyzstan anticipates that the country's economic growth for this year will be boosted by various sectors. In the agricultural sector, support is expected from animal husbandry and crop production.

The industrial sector is expected to benefit from the resumption of operations in currently inactive enterprises and the continued production of existing ones. Additionally, the service sector and the construction sector are expected to contribute to the overall economic growth.

In 2022, the Kyrgyz GDP growth amounted to 7 percent, reaching a total of 919 billion soms ($10 billion).