AKIPRESS.COM - Real GDP growth slowed to 3.1 percent during January-November 2018, down from 3.7 percent in the same period during 2017. This deceleration was the result of slower growth in both gold production and the non-gold industry, the World Bank said in the country's economic update "Weak Growth Despite Emerging Regional Opportunities".

Export performance remains weak, largely on account of a sharp slowdown in gold exports, and in spite of trade opportunities within the Eurasian Economic Union.

Attracting private investment remains a challenge.

Recent developments point to limited progress in addressing structural issues over the past few years.

While the Kyrgyz Republic was able to avoid an external shock-driven recession in 2014-15, the economy remains vulnerable to external economic shocks given its high dependence on an undiversified export base, workers’ remittances, and foreign aid.

The fiscal position has improved with a strong tax revenue performance and cuts to capital outlays. This has helped to keep public debt under control following a sharp increase in 2014-15. With inflation pressures low, the monetary policy stance remains relaxed.

The National Bank reduced its policy rate by 25 basis points to 4.75 percent in May 2018 to support economic growth, and has maintained a managed float of the exchange rate.