The EFSD presents a macroeconomic assessment for the Kyrgyz Republic at the Development Partners Coordination Council’s meeting
Bishkek, 19 June 2024. Experts from the Eurasian Fund for Stabilization and Development (EFSD) presented macroeconomic assessments and forecasts for the Kyrgyz Republic at a meeting of the nation’s Development Partners Coordination Council (DPCC).
According to EFSD economists Evgeny Zhevnov and Dmitry Kudryashov, economic growth in the Kyrgyz Republic is expected to reach 4.8% in 2024 (down from 6.2% in 2023). Growth is forecasted at 4.5% in 2025 and 4.0% in 2026. The main factors contributing to the economic slowdown include a decline in gold production, accumulated reserves and public investment. However, domestic and external demand is expected to support the economy. The decline in global food prices and restrictive monetary policies are anticipated to bring inflation down to the National Bank’s target range of 5–7% in the medium term.
It was noted that the EFSD is launching a Systematic Economic Monitoring (SEM) of its member countries. The Fund is one of the first regional financial arrangements in the world to be endowed with such powers by its member states.
In addition to diagnosing threats to economic stability, the SEM will help prioritize the structural and institutional changes needed to sustain economies over the long term.
Implementing the SEM will contribute to the strategic objectives of the EFSD, helping it fulfill its dual mandate of supporting macroeconomic stability and promoting economic development.
A public analytical product of the EFSD, reviewing the current economic situation in its member countries, is the quarterly Regional Economic Outlook (REO), which was first published for Q1 2024. The next edition is scheduled for release in July.
The Development Partners Coordination Council (DPCC) of the Kyrgyz Republic was established to coordinate and share information among international financial organizations, development partners, government agencies and civil society institutions in Kyrgyzstan. In addition to the EFSD, the Council’s members include the World Bank, the International Monetary Fund (IMF), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the United States Agency for International Development (USAID), and the Japan International Cooperation Agency, among others.
The Kyrgyz Republic is a founding state of the EFSD. Since its establishment, the Fund has allocated approximately US $660 million for the country’s development. Projects include the reconstruction of the Bishkek–Osh road; rehabilitation of the Toktogul HPP; commissioning of the second unit at Kambarata HPP-2; donation of over 100 medical vehicles; improvement of rural water supply in the Osh Region; the Health Caravan grant program for disease prevention in hard-to-reach areas; financing of agricultural machinery supplies; stabilization financing, and support for reforms.
The Eurasian Fund for Stabilization and Development (EFSD) is a regional financial arrangement totaling US $9 billion, established in 2009 by the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. The EFSD aims to promote economic and financial stability in its member states and support their sustainable development.
The EFSD Press Service: