ADB improves Kyrgyzstan 2024 GDP growth forecast to 5%

BISHKEK. April 11 (Interfax) - The Asian Development Bank (ADB) has raised its forecast for economic growth in Kyrgyzstan in 2024 to 5% from the 4% previously forecasted.

The April Asian Development Outlook 2024, published by the bank on Thursday, forecasts that Kyrgyzstan's GDP growth will slow to 4.5% in 2025.

Investments and private consumption will remain the main factors driving the increase in GDP this year. This will be influenced by high personal incomes due to a projected slowdown in inflation and growth in remittances.

A decrease in the GDP growth rate is expected due to a reduction in growth in the construction and service sectors.

Zheng Wu, head of the Asian Development Bank office in Kyrgyzstan, told reporters on Thursday that, despite government housing construction programs, the pace of construction for urban infrastructure, irrigation, social and industrial facilities would decrease in 2024 and accelerate in 2025.

ADB forecasts average annual inflation in the country at 7% in 2024 (in September 2023 it was predicted to be 8.6%), and 6.5% in 2025, the review says.

The current account deficit will decrease in 2024 and 2025 due to an increase in gold exports and a decrease in imports, the review says.

Kyrgyzstan's GDP in 2023 grew 6.2%, with inflation of 7.3%.

The country's National Bank forecasts GDP growth of 3.9% for 2024 and 5.7% for 2025, with average annual inflation of 5-7% and 4.9%, respectively.