Remittances as a percentage of GDP have steadily grown since 2000, with 2008 recording a record high inflow (29% of GDP). However, as a result of the global economic crisis and in particular the contraction of the Russian and Kazakh economies, remittances saw a sharp decline during the first half of 2009 (30% measured in US$ inflow). The trend seems to have stabilized by mid 2009.
The decline in remittances inflow in the first half of 2009 should be seen in light of a record increase in inflow in 2008: $1.2 billion for Kyrgyzstan , which is an increase of 40% over 2007. Considering that a large proportion of transfers are made in Russian ruble, which has lost 30-35% of its value to US dollar since August of 2008, remittances inflow to Central Asia demonstrate a remarkable resilience to the current economic crises.
If the Russian and Kazakh economies have indeed bottomed, then remittances inflow into Central Asia should at least remain at current levels till the end of the year.
| 2004 | 2005 | 2006 | 2007 | 2008* | |
| In millions of US$ | $329 | $521 | $754 | $1,041 | $1,462 |
| As a share of GDP | 15% | 21% | 27% | 27% | 29% |
* Preliminary data
Sources: National Bank of Kyrgyzstan, Economist Intelligence Unit; UNDP calculations.
