Growing despite the global downturn
Overview:
Despite international criticism of the conduct of recent presidential elections Kurmanbek Bakiev was comfortably elected to a second term. While the Kyrgyz Republic’s (KR) democratic credentials may be tarnished its economic management remains sound. Structural economic weaknesses leave the economy highly exposed to external shocks. However, the economic consequences of the global economic crisis have been dealt with reasonably efficiently. Both external and internal imbalances were exacerbated by, first, high food and fuel prices and, then, economic crises in its key trading partners. However, both the current account deficit and inflation are now falling and economic growth, though slow, remains positive. Russian financial support has contributed significantly to this favourable outcome.