Reduction of external debt to GDP to 25% signals the financial stability of the country, - economist

- In 2021, Kyrgyzstan had an external debt of $4.2 billion, which, according to forecasts, will increase to $5.1 billion by 2025, noted economist Nasirdin Shamshiev in a radio interview.

He specified that the increase in debt will amount to only $900 million; however, the share of external obligations in GDP has decreased from 53% to 25%. This reduction is a positive sign for investors, indicating the financial stability of the country.

Shamshiev explained: “The decrease in the share of external and state debt relative to GDP demonstrates that the government is capable of fulfilling its financial obligations. This, in turn, builds trust among investors and opens up opportunities for the implementation of long-term projects, such as the Kyrgyz-Chinese railway and Kambar-Ata-1, which have been discussed for many years.”
Additionally, the economist noted that according to international financial organizations, the country’s reserves have increased almost 2.5 times: from $2.9 billion in 2021 to nearly $7 billion in 2025.