Nurgul Akimova: ‘GDP growth does not always mean better life for citizens’

Nurgul Akimova, one of the most quoted experts on the Kyrgyz economy, shared with Akchabar her view on current processes. According to her, economic growth should reflect a real improvement in the well-being of citizens.

However, 9% GDP growth doesn't always mean inclusive development - it's important which sectors are driving it. For example, the garment industry creates jobs and develops human capital, while the financial sector and construction benefit a limited number of people.

Akimova also noted that Kyrgyzstan, as a small open economy, depends on external factors. For example, access to the SWIFT system is critical for international payments, and the country has to balance between major powers (the US, Russia, China) to avoid secondary sanctions.

The stability of the national currency is explained by the fact that the Kyrgyz economy does not depend on the export of natural resources, unlike Russia and Kazakhstan. The main sources of Kyrgyz income are migrant remittances, agriculture and small business.

She noted that inflation is largely due to import dependence: price increases are linked to the rising cost of imported goods. Official data do not always reflect the real situation for different groups of the population, so it is important to take into account the structure of consumer spending.

Speaking about tax policy, the expert emphasised that it is impossible to effectively regulate economic processes without quality statistics. State participation in the economy should eliminate market failures, such as providing internet access to remote areas or building affordable housing, but it is also important to monitor the efficiency of state assets management.

Digitalisation requires reliable infrastructure and data protection. Investments in communications can be more effective than traditional methods of preventing economic risks.

In addition, Nurgul Akimova noted the influence of cultural characteristics on the economy. For example, the tradition of celebrations has a significant financial burden on the population. However, attempts to intervene in such customs without long-term ideological work are unlikely to be successful. Instead, it is important to regulate credit organisations to prevent excessive borrowing by citizens.

Thus, according to Nurgul Akimova, Kyrgyzstan's economic development should take into account not only external conditions but also internal cultural peculiarities.