IMF Staff Country Reports

The 2022 Article IV Consultation discusses that the economy of the Kyrgyz Republic has shown resilience to the spillovers from the war in Ukraine and is estimated to have grown by 5.5 percent in 2022, driven by gold production, trade, transportation, and agriculture. Strong output growth in 2022 was a positive surprise, but elevated inflation remains persistent, the current account and fiscal deficits have widened, international reserves have declined, and poverty has increased. The banking system is healthy, but heightened risks call for vigilance. The National Bank of the Kyrgyz Republic should monitor pockets of vulnerabilities and be ready to provide liquidity support to solvent banks as needed. Governance reforms, such as improving management of state-owned enterprises, strengthening regulations, and combating corruption would support the business climate and growth prospects. Early action on climate change would strengthen long-term resilience of the economy.