EDB predicts GDP growth acceleration in Kyrgyzstan

25 April 2019 19:25 (UTC+04:00)

By Abdul Kerimkhanov

The Eurasian Development Bank (EDB) predicts the acceleration of GDP growth in Kyrgyzstan to 4 percent this year, said Aigul Berdigulova, the analyst of the EDB economic department, during the 2nd Congress of Eurasian Media.

The Congress organized by EDB is taking place on April 24-26 in Konakovo, Russia's Tver Region. About 70 representatives of leading media outlets of the EAEU member states, as well as the Bank’s management, European Economic Community representatives and experts take part in the congress.

Berdigulova informed that after the two years of recovery in economic activity, in 2018, the GDP growth slowed to 3.5 percent from 4.7 percent in 2017, which is largely due to the production decline at the Kumtor gold mine.

The presence of inflation below target during 2018 is due to a weak price situation on world food markets and the realization of a high base effect in the vegetable segment and the solid fuel segment.

Berdigulova noted that the GDP growth is expected to accelerate to four percent in 2019, which is largely due to producers' estimates regarding gold output, as well as a moderate increase in demand from the public sector.

She added that inflation dynamics in the forecast period will depend on the current conjuncture in the global food markets.

"According to our assessment, world food prices will begin to recover in the first half of 2019, and by the beginning of 2020, their dynamics will stabilize, which, accordingly, will affect the growth path of the consumer price index in Kyrgyzstan," she said.

In turn, EDB Board Chairman Andrei Belyaninov noted that the Bank works with two commercial banks of Kyrgyzstan to finance small and medium-sized businesses. He added that the Bank is often criticized for weak work with small and medium-sized businesses.

Belyaninov further stressed that the Russian-Kyrgyz Development Fund is EDB’s partner in Kyrgyzstan.

"We work with two banks to finance small and medium-sized businesses in Kyrgyzstan. This is a normal path that will allow us to better recognize the country's economy and avoid the risks of defaults," he noted.

The chairman added that the volume of investments amounted to $1.6 billion in 2018, which is 2.5 times more than in 2017.

The Eurasian Development Bank is an international financial institution established to promote economic growth in its member states, extend trade and economic ties among them, and support integration in Eurasia through investment.

The Bank was conceived by the presidents of Russia and Kazakhstan and established in 2006, following the signing of an international agreement by the two countries' presidents on January 12, 2006. The EDB participants are EAEU countries and Tajikistan.

The EDB’s greatest achievement of recent years has been its recognition as an international financial development institution specializing in regional integration.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94 

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