Kyrgyz Republic Economic Update, Spring 2016 : Policy Challenges in a Difficult Environment
The Kyrgyz economy has remained resilient in the face of continued significant external head winds in 2015, but sources of vulnerability have increased.While overall Gross Domestic Product (GDP)growth is estimated to have slowed to 3.5 percent in 2...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26590904/kyrgyz-republic-policy-challenges-difficult-environment-special-focus-growing-burden-public-debt http://hdl.handle.net/10986/24938 |
| Summary: | The Kyrgyz economy has remained
resilient in the face of continued significant external head
winds in 2015, but sources of vulnerability have
increased.While overall Gross Domestic Product (GDP)growth
is estimated to have slowed to 3.5 percent in 2015, this
deceleration was mostly on accountof lower gold production.
Non-gold output growth remained robust at 4.5 percent
(essentiallyunchanged from 2014), although with significant
shifts in drivers. The policy stance was broadly
appropriate.Looking forward to 2016 and beyond, economic
activity is expected to slow down,with significant downside
risks.With gold production expected to decline in coming
years, andagricultural output growth returning to historical
averages, overall growth is projected to moderate to 3.4
percent and 3.1 percent in 2016 and 2017 respectively. For
public policy, the main challenge will be to reconcile the
objective of supporting economic activity with principles of
prudent management.Indeed, while the Kyrgyz Republic’s debt
path remains sustainable, there are good reasons to be
concerned over risks of debt distress. The Special Focus
section of this Economic Update analyzes the features of the
Kyrgyz Republic’s public debt and explains the factors
behindthe recent deterioration of the debt sustainability
outlook. It concludes by pointing out some of the policy
steps that ought to be taken in response. |
|---|