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    What risks threaten the economy of Kyrgyzstan?

    Published

    06/24/2025, 17:37

    What risks threaten the economy of Kyrgyzstan?

    The Eurasian Development Bank (EDB) in its latest macroeconomic forecast highlighted key risks that could slow down Kyrgyzstan's economic growth and increase inflationary pressure in the coming years.

    According to the forecast, if the global economy enters a deeper recession than expected, this will primarily affect Kyrgyzstan's foreign economic activity—exports, remittances, and investment projects. This will lead to a slowdown in the country's economic growth.

    In addition, a possible delay in the implementation of major investment projects planned for 2025–2027 could pose a risk to domestic economic activity.

    Inflationary threats are also highlighted separately.

    In May 2025, the risks of global grain price increases rose. Against this backdrop, concerns are growing about a possible dry summer, which could negatively affect the domestic harvest. This puts additional pressure on food prices.

    There is also a continued possibility of capital outflows from emerging markets, including Kyrgyzstan. If this scenario materializes, the national currency could weaken more than expected. In this case, inflation will accelerate and the National Bank will have to tighten monetary policy.

    According to EDB experts, these factors could significantly affect financial stability and consumer prices in the country.


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