Kyrgyz Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kyrgyz Republic

IMF Staff Country Reports, March 4, 2024

Source details

Canonical URL: Kyrgyz Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kyrgyz Republic

The Kyrgyz economy "grew strongly in 2023, led by construction and trade."
Tax revenue mobilization improved.
Public debt declined.
Headline inflation fell from 14.7 percent in December 2022 to 7.3 percent in December 2023, "supported by a marked reduction in food and fuel inflation."
Core inflation remained elevated due to demand pressures.
The official current account deficit "has remained significant" because of:
- the decline in net remittance inflows,
- lower gold exports,
- unrecorded re-exports.

Output is expected to grow at its potential rate of 4 percent in the medium term.
Inflation is expected to decline to mid-single digits.
Public debt is expected to remain contained.

Current favorable macroeconomic conditions present a window of opportunity to strengthen the policy framework and raise growth prospects through structural reforms.
Emphasis on addressing both macroeconomic imbalances (inflation, current account) and structural constraints (state-owned enterprises, sectoral reforms).

Strengthen governance, including management and privatization of state-owned enterprises.
Enhance competition.
Reform the electricity sector.
Strengthen social safety nets.

Kyrgyz Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kyrgyz Republic