BISHKEK, Kyrgyzstan, April 12. The World Bank (WB) projects an improvement in Kyrgyzstan's current account deficit, forecasting it to narrow to 10.5 percent of GDP in 2024, Trend reports.
According to the WB, the figure is significantly lower than 25.2 percent of GDP in 2023.
Looking ahead, the WB anticipates further progress, with the deficit expected to shrink to 8.3 percent in 2025 and to 7.7 percent in 2026. These projections signal a positive trajectory for Kyrgyzstan's economic landscape.
Factors contributing to this improvement include a surge in external demand for non-gold goods, continued growth in service exports, and a gradual increase in remittance inflows. To finance the deficit, Kyrgyzstan plans to leverage inward foreign direct investment (FDI) and external borrowing.
Moreover, the WB acknowledges that the deterioration in the external balance has exerted pressure on the exchange rate. This pressure has resulted in a 4.4 percent depreciation of the Kyrgyz som against the US dollar in 2023.
Reflecting on previous years, the WB notes that Kyrgyzstan's current account deficit was 42.7 percent of GDP in 2022 and 8 percent in 2021.
