Kyrgyz Republic:2022 Article IV Consultation-Press Release; and Staff Report

The Kyrgyz Republic is facing significant policy challenges stemming from multiple shocks: the anticipated spillovers from the projected contraction in Russia; the global slowdown; global financial tightening; and still-high food and energy prices. Strong output growth in 2022 was a positive surprise, but elevated inflation remains persistent, the current account and fiscal deficits have widened, international reserves have declined, and poverty has increased. In view of heightened uncertainty, policy buffers that were eroded in addressing the pandemic need to be rebuilt.