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Kyrgyzstan - Economic Reforms in 1996

The expectations of the government of Kyrgyzstan and the National Bank of Kyrgyzstan were quite optimistic. In 1996, despite of fiscal problems, further macroeconomic stabilization (i.e., reduction of the annual rate of inflation) and a stable rise of production were expected. However, as it is shown in the analysis below, not all economic targets have been achieved, and stabilization reforms in 1996 should not be considered as very successful (inflation rate increased to 35%, and national currency depreciated by about 50%). On the other hand, another aim - overcoming the slump in production - has been achieved (GDP increased by 5.6%)11, and several important socio- economic reforms have been started and continued.