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

International Monetary Fund

No 2024/064, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2023 Article IV Consultation highlights that the Kyrgyz economy grew strongly in 2023, led by construction and trade, despite the challenging regional environment. Tax revenue mobilization improved, and 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, but demand pressures have kept core inflation elevated. The official current account deficit has remained significant due to the decline in net remittance inflows, lower gold exports, and unrecorded re-exports. Output is expected to grow at its potential rate of 4 percent in the medium term, inflation decline to mid-single digits, and public debt remain contained. Current favorable macroeconomic conditions present a window of opportunity to strengthen the policy framework and raise growth prospects through structural reforms. The priorities are strengthening governance, including management and privatization of state-owned enterprises, enhancing competition, reforming the electricity sector, and strengthening social safety nets.

Keywords: staff appraisal; Kyrgyz authorities; policy recommendation; January monetary policy meeting; headline inflation; Debt sustainability analysis; Government finance statistics; Global (search for similar items in EconPapers)
Pages: 85
Date: 2024-03-04
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