BISHKEK, Kyrgyzstan, April 13. The World Bank (WB) projects fiscal deficit of Kyrgyzstan to reach 1.6 percent of GDP in 2024, compared to the fiscal surplus of 1.2 percent recorded in 2023, Trend reports.
The budget surplus seen in 2023, which the WB attributes to several factors, was supported by rises in both tax and non-tax revenues. There were also climbing expenditures, specifically notable increases in wages, salaries, social benefits, and pensions.
Despite these expenditure increases, the combination of a fiscal surplus and economic development resulted in a fall in the public debt level, which fell to 45.5 percent of GDP by the end of December 2023, down from 46.9 percent the year before.
Looking ahead, the fiscal imbalance is expected to increase more in the next few years. The World Bank projects a 1.9 percent fiscal deficit in 2025 and 2.4 percent in 2026, owing mostly to increasing capital spending.
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
