During a briefing held today, the Deputy Minister of Economy and Commerce of the Kyrgyz Republic, Choro Seitov, discussed current issues related to inflation. He emphasized how external and internal shocks affect the economic situation in the country.
Seitov noted that the economy of Kyrgyzstan is significantly influenced by external factors. The main ones include logistical problems, the cost and complexity of supplies, as well as fluctuations in global prices for key products such as vegetable oil and sugar, and crop yields in partner countries.
Although internal factors are considered more stable, they still depend on weather conditions and the area of crops in the republic.
“We are targeting an inflation rate of 5.7%, but by the end of this year, there will be a need to revise these indicators due to significant changes in the external environment,” he added.
It should be noted that last year inflation remained above 9%, but was unequivocal.
The Deputy Minister also emphasized that the growth of investments in fixed capital, expected to be at 18-20%, serves as an important driver of the economy. This is related to the implementation of large infrastructure projects.
In addition, the ministry continues its work on the fiscalization of the domestic market. In particular, a pilot project in the hotel and restaurant sector has shown successful results, leading to a significant increase in tax revenues. “The State Tax Service plans to expand this project to include entrepreneurs such as saunas and bath complexes,” concluded Choro Seitov.
