In the Kyrgyz republic we focus on:
Fostering sustainable growth by strengthening regional cross-border linkages: As a landlocked economy with a limited domestic market, the Kyrgyz Republic would benefit greatly from deeper regional integration, given its important energy export potential, as well as good regional trade and transit position. In that context, the Bank will aim to help facilitate economic and trade cooperation and integration with the region, by supporting rehabilitation of critical infrastructure, strengthening the exporting sector including through access to finance and advisory, as well as supporting cross-border investments and regional cooperation projects.
Enabling SMEs to scale-up and bolster competitiveness: Outside the extractive sector, the economy is dominated by SMEs, with few mid-sized corporates in existence. While deeper regional trade links create opportunities for the best local firms, stronger operating models and core competencies will be needed to better compete. The Bank will thus support competitiveness and sustainable growth of SMEs with viable business models through investment and advisory, promoting in particular skills transfer and operational efficiency improvements, and seek to strengthen the financial sector to facilitate access to finance for SMEs, in particular in local currency. The Bank will also step up its efforts of improving the business environment through policy dialogue.
Promoting sustainability of public utilities through commercialisation and private sector participation: To address underinvestment, deficient regulatory environment, weak core competencies, poor financial and operational performance, the Bank will continue to support municipal utilities, where it has a recognized expertise and delivery model in improving operators’ financial condition, operating practices and governance, and seek to support sustainability of power sector by rehabilitating assets and developing a more attractive institutional framework for private investment.
In addition, the Bank will seek to support through the above priorities the reduction of regional economic disparities, by increasing its outreach to less developed rural areas, in particular in the southern regions, and addressing inclusion gaps in relation to gender and youth across sectors.
The EBRD’s latest Kyrgyz Republic strategy was adopted on 25 February 2015
English | Russian | Kyrgyz
EBRD forecast for Kyrgyz Republic Real GDP Growth in 2017 3.9%
EBRD forecast for Kyrgyz Republic Real GDP Growth in 2018 4.1%
Growth in the Kyrgyz Republic remained broadly stable at 3.8 per cent in 2016, compared to 3.9 per cent in 2015, and represented a marked recovery after the contraction of 2.3 per cent in the first half of the year. The improvement largely reflected strong output growth at the Kumtor gold mine, after the owner, Centerra Gold, received approval for its mining plan in the middle of the year. Currency pressures eased, with the Som appreciating by 9.6 per cent over 2016, helped by a rebound in remittances from Russia, up by 19 per cent (in US dollar terms) in 2016.
The economy is expected to grow by 3.9 per cent and 4.1 per cent in 2017 and 2018 respectively, supported by further recovery in Russia, rising remittances, enhanced trade and financial support for the country, and strong mining production output. Large public investment in the infrastructure and energy sectors, mainly financed by China, is expected to remain significant in coming years. However, a build-up of structural reform challenges over 2014-16 will, if not addressed, continue to weigh on growth prospects.