Kyrgyzstan’s economic growth will slow in 2023, ADB says

Kyrgyzstan’s economy is expected to develop more slowly in 2023 due to a slowdown in gold output and the impact of poor weather on agriculture, according to the Asian Development Bank (ADB).

“Kyrgyzstan’s GDP growth rate would be 3.8% in 2023, down from the ADB’s prior prediction of 4.5%, due to slower-than-expected growth in the first seven months of the year. Economic growth in Central Asia is predicted to rise marginally to 4% in 2024,” according to the Asian Development Outlook (ADO) for September 2023.

“The forecast is exposed to heightened uncertainty and downside risks from a net reversal of capital flows, poorer-than-expected Russian Federation economic growth, decreased remittances, or secondary sanctions,” ADB Country Director for Kyrgyz Republic Zheng Wu said.

“Policy changes must continue to increase the country’s development potential and create resilience to future shocks in this scenario,” he added.

Inflation fell in the first seven months of 2023 as global food and energy costs fell. Annual inflation is predicted to stay around 12% in 2023 before slowing to 8.6% in 2024.

This year, the Asian Development Bank (ADB) established a new 5-year national partnership plan (CPS) for the Kyrgyz Republic to support the country’s development goals by encouraging inclusive, resilient, and private-sector-led growth.

Since joining ADB in 1994, Kyrgyzstan has received 208 public sector loans, grants, and technical support totaling $2.5 billion.

The Asian Development Bank (ADB) is dedicated to establishing a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. It was founded in 1966 and is owned by 68 people, 49 of whom are from the region.