Healy Consultants reviews the Kyrgyzstan economy

BISHKEK, Kyrgyzstan - May 17, 2016 - PRLog -- The International Monetary Fund (IMF) has predicted that the growth of Kyrgyzstan's economy is set to slow down in 2016 by upto 3%. The economy of the Republic of Kyrgyzstan has been experiencing adverse external conditions including the reduction in commodity prices, slow economic growth and the depreciation of currencies in the countries of the region. As a result, in 2015 the growth rate reduced up to 3.5%, and most notably reduced remittances.

"It is expected that these adverse external conditions will continue in 2016. This will lead to a further slowdown in growth, the increase in the deficit budget and external operations and reduction of the rate of credit growth in the economy. Recovery growth in the medium term will depend on a steady course of reform along with the improvement of the economic situation in major trading partners," IMF experts noted.

According to the IMF, slowing revenue growth against a background of increased costs led to the depletion of the fiscal capacity of public administration bodies of Kyrgyzstan. The debt is approaching a critical level. As a result, it's becoming more and more difficult to attract the necessary funding and at the same time meet the vital needs in the social sphere and in the field of development. It is therefore essential for the Kyrgyz government to keep the budget deficit within the target of 4.5% of GDP in the budget approved for 2016. To achieve this, considerable additional efforts are required: the definition of permanent measures to increase revenues, control of non-priority expenditures and a balanced approach to the selection of investment projects and the associated borrowing.

The Islamic Republic of Iran and the Kyrgyz Republic have also recently signed memorandums of understanding (MoUs) during the 11th Joint Economic Commission Meeting in the Kyrgyz capital to increase bilateral exchanges in different fields. Iranian and Kyrgyz officials held talks on cooperation in different sectors, including the construction of a new railway track connecting Iran, Afghanistan, Tajikistan, Kyrgyzstan and China. Such activities will boost trade and increase foreign direct investment in order to promote the growth of Kyrgyzstan's economy.

About Healy Consultants

For over a decade, the incorporation experts at Healy Consultants Pte Ltd., with their branch in Kyrgyzstan, have been assisting investors worldwide to set up the optimum corporate structure for doing business in the country. The services offered include company registration, banking solutions, accounting and tax and legal services and corporate support services.

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To inquire more about Kyrgyzstan company setup options and schedule a conference call, email us at email@healyconsultants or call us on +65 6735 0120.