The Economy of Kyrgyzstan Will Maintain Leadership in the Region for GDP Growth - EDB Forecast

Ирина Орлонская Economy
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According to forecasts, in the coming year, Kyrgyzstan's economy will take leading positions in its region, demonstrating GDP growth of 9.3 percent. This analysis was presented by the Eurasian Development Bank (EDB).

Analysts emphasize that such growth will be supported by increased investments in the fields of transport, energy, water supply, and housing construction. The EDB also predicts that by the end of 2026, inflation will decrease to 8.3 percent. However, a sharper decline in inflation will be limited by the growth of tariffs and excise taxes. The average exchange rate of the som for the next year is expected to be at 89.2. Sustainable growth in remittances and high gold prices, which is Kyrgyzstan's main export commodity, will have a positive impact on the economy.

In addition, the EDB released a report assessing trends in the global economy and the situation in the Eurasian region. According to their forecasts, the global economy continues to grow steadily and is gradually adapting to new trade conditions. At the same time, developed countries are experiencing weak dynamics, while developing economies, such as those with large markets, are showing high activity.

In the United States, economic growth of 1.6 percent is expected in 2026. Despite the high level of public debt, which may limit investments, the development of IT infrastructure should support economic activity.

In the eurozone, a slight growth of about 1.1 percent is also forecasted. This will mainly be driven by increased government spending on defense and infrastructure.

China, on the other hand, will continue to demonstrate high growth rates: a growth of 4.6 percent is expected next year, supported by active stimulation of domestic demand by the authorities.

As for the economy of the Eurasian region, the projected growth will be 2.3 percent by 2026. It is expected that the dynamics of the global economy and raw material markets will not hinder growth, although they will not be its main driver. Most countries in this region will be able to maintain a high level of economic activity due to significant investments. Inflation will gradually decrease, and the rate of price growth in the region will slow down to 6.3 percent.
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