October 2022. Kyrgyz Republic: Social and Economic Development in the first half of 2022

In the first half of 2022, the KR economy grew by 6.3% amid an ongoing recovery in the aftermath of the COVID-19 pandemic, supported by fiscal stimulus and increased gold production. External shocks in March 2022 led to local currency depreciation and accelerated inflation.  Under these conditions, the NBKR had to implement a tighter monetary policy, as well as conduct foreign currency interventions to stabilize prices and the exchange rate. Significant growth of tax revenues generated a state budget surplus of 1.4% of GDP in the first half of 2022. The demand for foreign currency deposits allowed the banking sector to increase foreign currency liabilities and profitability. Prudential indicators of the banking sector remained at a stable level.

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