The European Bank for Reconstruction and Development predicts that at year-end 2021, the economy of Kyrgyzstan will grow by 2.5%, report of the European Bank for Reconstruction and Development on regional economic prospects says.
The bank cut its forecast for economic growth compared to June estimates by 4.1%. In summer, the EBRD assumed that the country’s GDP would grow by 6.6%.
The forecast for 2022 was improved by 0.4%, from 4.6% to 5%.
A sharp recovery in the volume of remittances from Russia and an increase in private consumption contributes to the growth of the economy in 2021 and an increase in private consumption, which has a positive effect on the service sector.
“Nevertheless, it is expected that the volume of investments in fixed assets will remain at a low level at the yearend due to political risks and problems with the investment climate in connection with the situation with Kumtor mine, increasing pressure from regulatory bodies on medium-sized businesses,” the report says. (24.kg/Business World Magazine)
