AKIPRESS.COM - Exports in Kyrgyzstan are forecast to grow by 6.0% in 2017 and 5.5% in 2018, mainly from gains in agriculture and textiles, the Asian Development Bank's (ADB) report says.
However, weak demand in 2017 within the Eurasian Economic Union could worsen the trade outlook, as could the failure of Kyrgyz products to comply with EAEU veterinary and phytosanitary standards. Using $1 billion from a joint development fund with the Russian Federation, the government is working to restructure the economy by supporting export-oriented industries and taking other measures to smooth entry into the EEU, the ADB said in its Asian Development Outlook 2017.
Imports are expected to grow by 10.0% in 2017 and 5.5% in 2018 to meet the needs of planned infrastructure projects, according to the Bank.
Remittances will likely rise by another 20%–25% in 2017, refl ecting some recovery in the Russian Federation and the favorable conditions for the Kyrgyz labor migrants under the EEU treaty.
The Kyrgyz Republic is very close to being rated at high risk of debt distress. External public debt, propelled by heavy public investment, could surpass 63% of GDP during the next 2 years if the currency depreciates, though debt will likely decline in subsequent years., the report says.
International reserves are forecast to be kept at around $2.0 billion in 2017 and 2018.