The International Monetary Fund (IMF) has concluded its Article IV consultations with the Kyrgyz Republic, noting that the country’s economy is entering a phase of slower growth after several years of record expansion, Akchabar.kg reports.
According to the IMF experts, the strong economic performance over the past three years was largely driven by temporary factors, particularly a surge in re-export trade. As external conditions begin to normalize, economic activity is slowing, and Kyrgyzstan must now adjust to more moderate growth rates.
The IMF projects that medium-term growth will stabilize at around 5.25%, which is closer to the country’s estimated potential. However, the outlook remains highly uncertain, largely dependent on external risks, especially regional geopolitical developments.
“Further tightening of sanctions on Russia could dampen remittance flows and overall growth due to a weakening ruble and slower Russian economic performance,” the IMF noted. “Conversely, a durable peace in the region could have the opposite effect, though it may also reduce some of the trade and financial flows that fueled recent growth.”
In this context, IMF experts recommend that Kyrgyzstan prioritize medium-term strategies aimed at building resilience against future shocks. This includes restoring policy buffers and enhancing prospects for higher and more inclusive growth through structural reforms.
CentralasianLIGHT.org
July 6, 2025