Kyrgyz Republic: 2021 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, August 2, 2021
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- Kyrgyz Republic: 2021 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: August 2, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513594040.002
Overview
- The Kyrgyz economy is highly dependent on remittances and foreign aid and does not have access to international capital markets.
- Inequality is relatively low, but poverty is widespread.
Economic impact of COVID-19
- Output contracted by 8.6 percent in 2020.
- Public debt rose by 16.5 percent of GDP to 68 percent.
- The som depreciated by 19 percent against the US$.
Near-term outlook and risks
- Under the assumption that the global pandemic begins to decisively recede this year, a rebound in growth is expected in 2021–22.
- Significant uncertainty surrounds the baseline outlook and the recovery could be delayed if downside risks materialize.
Medium- to long-term challenges
- Create jobs for about 65,000 new jobseekers annually.
- Reduce labor out-migration.
- Transform the economy from a reliance on remittances to more diversified and private sector-led growth underpinned by higher investment and exports.
Policy implications and recommended focus
- Implement deep structural reforms to support diversification and private sector-led growth.
- Prioritize measures to raise investment and exports to reduce dependence on remittances and foreign aid.
Content in this bundle
- 1kgzea2021001