The World Bank forecasts a 3.5% GDP growth for Kyrgyzstan in 2023, with an expected 4% growth in 2024-2025, as stated in the October reports 24kg with reference to review of the World Bank for the Europe and Central Asia region.
According to the review, the GDP growth in Kyrgyzstan for 2023 is projected at 3.5%, primarily due to a slowdown in agricultural production. Budgetary results for the first half of 2023 were favorable thanks to improved revenue figures, but a slight increase in the budget deficit is expected due to rising expenses, notes the World Bank.
The World Bank estimates that the annual average inflation rate in Kyrgyzstan will decrease to 12 % this year, 10%in 2024, and 7% in 2025.
In 2023, high food prices, unemployment uncertainties, and a decrease in remittances will remain significant challenges for the well-being of the population. Further deterioration in the Russian economy could lead to a continued reduction in remittances.
Stricter enforcement of existing international sanctions against Russia or the imposition of secondary sanctions against Kyrgyz citizens and companies could significantly impact trade and domestic economic activity. The domestic political situation remains sensitive to upcoming tariff increases for electricity and other utilities, underscores the bank.
Earlier, Daryo reported that Uzbekistan's GDP is expected to grow by 6.5% annually for the next two years, driven by rising nominal wages, strong domestic demand, and successful IPOs and privatization efforts. Key sectors like retailing, construction, services, and agriculture are performing well.
However, a decline in remittances and infrastructure challenges pose potential threats to growth. In the broader Central Asian region, GDP is predicted to rise by 5.7% in 2023 and 5.9% in 2024, with continued economic growth driven by factors like international trade, tourism, and remittances.
Uzbekistan's "Uzbekistan - 2030" plan outlines strategic goals for the country's development, including expanding the capital market, promoting public participation in IPOs, and enhancing market regulation through private associations.
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