Presidential elections approach
Overview:
The economy is rebounding strongly following the contraction seen last year as a result of the political crisis. Neverthless, inflation and the current account deficit remain high. The government should take advantage of stronger revenues to cut the fiscal deficit more briskly than currently envisaged. It is uncertain whether this will happen however. The current Prime Minister is the favourite to win presidential elections to be held at the end of this month. For the first time, the outcome of the vote is uncertain. Atambayev may face a significant challenge from a southern-backed candidate in the second round. Despite his substantial lead in the opinion polls, then, he has been using his position to boost his campaign by promising large spending increases. The presence of the IMF program should help to limit this to some extent.