BISHKEK, Kyrgyzstan, April 14. The World Bank (WB) expects Kyrgyzstan to record a net foreign direct investment (FDI) inflow equivalent to 3.9 percent of its GDP in 2024, Trend reports.
According to the WB, this percentage is expected to remain at 3.9 percent in 2025 and 3.5 percent in 2026. In contrast, FDI inflows stood at 3.7 percent of GDP last year, 4.2 percent in 2022, and 6.1 percent of GDP in 2021.
In broader terms, the WB says Kyrgyzstan's economy expanded by 6.2 percent in 2023, mainly because of a boost in transit trade following the war in Ukraine. This growth was driven by increased spending and exports.
However, the analysts at the WB predict that the economy will slow down. They expect GDP growth to drop to 4.5 percent in 2024 due to a slowdown in the services sector. Without changes to improve long-term growth, they anticipate growth to further decrease to 4.2 percent in 2025 and 4 percent in 2026.
The WB notes that the outlook for the economy carries significant risks. These risks mainly come from outside factors, like geopolitical tensions and trade connections with Russia. If the Russian economy worsens, it could lead to fewer money transfers from Kyrgyz workers abroad and less demand for exports. Also, if food and fuel prices suddenly rise worldwide, it could stop the downward trend and push inflation up to double digits.
