The New York Times: Did Western Sanctions "Benefit" Kyrgyzstan? Economy Surges 11% in One Year
According to a report by The New York Times, Kyrgyzstan’s economy grew by 11% over the past year, largely due to the special military operation and the ensuing political and economic developments.
With Western sanctions imposed and major enterprises evacuating Russia, Kyrgyzstan has become a key transit route for Chinese and European goods—cars, electronics, dual-use equipment, and payment settlements all flow through this country.
According to assessments by the Asian Development Bank, between 30% and 40% of Kyrgyzstan’s economic growth over the past four years has come from re-export trade. Since Kyrgyzstan and Russia are both members of the Customs Union, goods transported from Kyrgyzstan to Russia are exempt from traditional tariffs.
In addition, rising gold prices, growth in the cryptocurrency market, and increased government infrastructure spending have further fueled economic expansion. The New York Times article notes that Bishkek now resembles a massive construction site.
"There’s a sense that the economy is truly growing—like a wave, making you want to ride it," shared Chingiz Arkanoev, a Kyrgyz entrepreneur building a large logistics hub just outside Bishkek.
The New York Times writes that this economic boom has strengthened President Sadyr Japarov’s hold on power as he advances cooperation with Russia. At the same time, he has implemented tax and customs reforms: according to him, tax revenues have quadrupled since 2020, and customs fees have increased sixfold.
Economists interviewed by The New York Times warn that the current economic prosperity primarily benefits a small number of individuals closely connected to the ruling elite, while nationwide inflation intensifies amid rising food and housing rents, placing increasing pressure on ordinary citizens.
Original source: toutiao.com/article/1876446466682883/
Disclaimer: This article reflects the personal views of the author