Key Economic Challenges Facing New Government

The fallout from Kyrgyzstan's political crisis and ethnic violence in the first half of the year is set to severely dent economic activity through end-2010. In order to avoid further shocks to the economy, the government will need to ensure political and ethnic stability, which will prove a major challenge as the administration attempts to negotiate a difficult transition towards parliamentary democracy. For now, the economy is set to remain heavily reliant on external financing.

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