Publication:
Kyrgyz Republic Economic Update No. 7, Spring/Summer 2018: Favorable Headwinds Time for Structural Reform

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dc.contributor.authorWorld Bank Group
dc.date.accessioned2019-02-08T16:25:22Z
dc.date.available2019-02-08T16:25:22Z
dc.date.issued2018-07
dc.description.abstractEconomic growth was robust in 2017, above expectations. This was thanks to favorable external developments in the region, continued expansionary fiscal policy, and growth in the gold sector. Real GDP growth reached 4.6 percent in 2017, up from 4.3 percent in 2016, and the fastest rate since 2013. During the first 4 months of 2018, growth slowed to 1.3 percent, from a year earlier, as a result of the contraction in gold production; excluding gold, output grew at 2.5 percent, up from 2.3 percent over the same period in 2017. In short, the economy appears to have fully recovered from the recent shock brought about by the fall in oil prices. Investment and consumption drove output growth last year. Sources of growth appear to have been balanced. Growth was mainly driven by consumption and investment, with: private consumption growth returning to positive territory, after two consecutive years of contraction and high rates of public and private investment. Net exports also made a positive contribution, thanks to robust export growth. With the regional downturn now over, it is time the authorities should seize the opportunity for fiscal reform. First and foremost, action is required on the fiscal side to increase discipline and policy quality, transparency and consistency. In the past years, the authorities have deliberately delayed planned fiscal consolidation to accommodate the external shocks. As a result, public debt has remained elevated and fiscal buffers have been depleted. Moreover, fiscal discipline (in the context of relaxed targets) has been achieved at the cost of ad hoc measures, which entail reduced spending efficiency. It is now time to reverse this trend through implementing the recently adopted fiscal rule, tax administration reform and concrete measures to contain recurrent spending (to preserve room for investment). Additional steps to improve spending quality, include ensuring that planned amendments to the Public Procurement Law safeguard best international practice and that steps are taken to improve public investment management. In the long run the core challenge is to increase overall productivity in the economy. Creating and preserving fiscal space for investment in infrastructure is key, including via reforming energy tariffs. Significant long-term payoffs can also be expected from implementing the ambitious digital agenda under the Taza Koom flagship program. The Special Focus section of this report highlights the main challenges the country will face in this regard.en
dc.identifierhttp://documents.worldbank.org/curated/en/307851548224951736/Kyrgyz-Republic-Favorable-Headwinds-Time-for-Structural-Reform-with-a-Special-Focus-on-Digital-Challenge
dc.identifier.doi10.1596/31238
dc.identifier.urihttps://hdl.handle.net/10986/31238
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectDIGITAL ECONOMY
dc.subjectDIGITAL TRANSFORMATION
dc.subjectICT INFRASTRUCTURE
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTLOOK
dc.subjectINFLATION
dc.subjectTRADE
dc.subjectSOCIOECONOMIC DEVELOPMENT
dc.subjectMACROECONOMIC POLICY
dc.subjectFISCAL TRENDS
dc.subjectMONETARY POLICY
dc.subjectEXCHANGE RATES
dc.subjectRISKS
dc.titleKyrgyz Republic Economic Update No. 7, Spring/Summer 2018en
dc.title.subtitleFavorable Headwinds Time for Structural Reformen
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleKyrgyz Republic Economic Update No. 7, Spring/Summer 2018
okr.date.disclosure2019-01-23
okr.doctypeEconomic & Sector Work::Economic Updates and Modeling
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/307851548224951736/Kyrgyz-Republic-Favorable-Headwinds-Time-for-Structural-Reform-with-a-Special-Focus-on-Digital-Challenge
okr.guid307851548224951736
okr.identifier.doi10.1596/31238
okr.identifier.externaldocumentum090224b0868b0f8d_1_0
okr.identifier.internaldocumentum30778123
okr.identifier.report133934
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/307851548224951736/pdf/133934-22-1-2019-18-45-56-EngSpringSummerKGZBEUv.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryKyrgyz Republic
okr.topicInformation and Communication Technologies::Digital Divide
okr.topicInformation and Communication Technologies::Information Technology
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicPoverty Reduction::Employment and Shared Growth
okr.topicPoverty Reduction::Inequality
okr.unitEurope and Central Asia 2 (GMTE2)
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