BISHKEK, Kyrgyzstan, October 6. The World Bank (WB) anticipates that Kyrgyzstan's current account deficit will be approximately 29 percent of GDP in 2023, Trend reports.
This figure is projected to decrease significantly to 10.4 percent in 2024 and 10.6 percent in 2025. WB analysts expect this improvement to be driven by increased external demand for non-gold products and growth in the export of services. The deficit is expected to be covered through foreign direct investment (FDI) and external borrowing.
The previous forecast for the current account deficit in 2023, as estimated in April, was significantly higher at 13.7 percent of GDP. However, the difference is less notable for 2024 and 2025, with a projected deficit of 11.4 percent in 2024 and 10 percent in 2025.
As for the fiscal deficit, it is predicted to see a slight increase to 1.6 percent of GDP in 2023 due to the full-year impact of higher public sector wages and social benefits.
This will balance out the anticipated drop in non-tax income and grants as a part of the GDP. The World Bank thinks the deficit will go up to 2.6 percent of GDP in 2024 because of more spending on big projects. However, it's expected to go down to 2.1 percent in 2025 as the government plans to combine both regular and big project spending.