Published
06/05/2025, 15:27The International Monetary Fund (IMF) has concluded its Article IV consultations with the Kyrgyz Republic, stating in its final statement that the country's economy is entering a phase of slower growth after several years of record activity.
As emphasized by the Fund's experts, the economic upturn of the past three years was largely driven by temporary factors, including growth in re-export trade. Now, as the external economic situation normalizes, activity is slowing, and Kyrgyzstan will need to adjust to more moderate growth rates.
Growth is projected to stabilize at around 5.25% in the medium term, which is closer to the economy's potential level. However, the outlook remains highly uncertain and depends on external factors, primarily the geopolitical situation in the region.
“Further tightening of sanctions against Russia could weaken remittances and growth due to the depreciation of the ruble and slower growth in Russia. Conversely, lasting peace in the region could have the opposite effect, but it could also reverse some of the trade and financial flows that have fueled growth in recent years,” the IMF said in a statement.
In these circumstances, according to the Fund's experts, the republic's medium-term priority should be to strengthen the economy's resilience to future shocks by restoring political buffers and improving the prospects for higher and more inclusive growth through structural reforms.
