TRENDS IN HOUSEHOLD WELLBEING AND VIEWS October - December 2023 LISTENING TOKYRGYZSTANQUARTERLY BRIEF SERIES Key Trends in Q4 2023Public Disclosure Authorized HOUSEHOLD WELLBEING •Overall, socioeconomic situation of the householdsimproved during Q4 2023.Household’s financial security andfood security increased. Inflation-adjusted incomes remainedstable. Likelihood to fall sick and need medical attention hasbeen on a downward trend since December 2021, but exhibitsseasonal spikes in winter. The level of indebtedness hasincreased. However, the share of household income spent onpaying/servicing the debt has been gradually decreasing. •The fraction of households who experienced an adverse eventincreased in Q4 2023, but by a small margin, driven byhigherlikelihood to lose a job and a seasonal spike in illnesses.•There wereno major changes in disruption of public services:electricity, gas, water and heating.•Subjective perceptions of wellbeingreflected positivechanges in socioeconomic situation andcontinued to improvein Q4 2023.Public Disclosure Authorized Listening to Kyrgyzstan(L2KGZ) is a monthlypanel survey. It isadministered to 1,500households every monthto monitor well-beingand opinions of arepresentative groupof the population ofKyrgyzstan. It wasstarted in December2021. L2KGZ quarterlybriefs summarizechanges that occurredin the last 3 months,and explore varioustopics based on the dataduring the entire period. VIEWS ON ECONOMY AND GOVERNANCE •Views on national and local economic conditions continued toimprove.•Jobs and prices remain the most pressing economic challenges;the number of people concerned about economic inequalityincreased.•Views on government’s work and trust in politicians and centralbank remain on the upward trend.Public Disclosure Authorized Changes in Household Wellbeing The L2KGZ briefs focus on several dimensions of household wellbeing: (1) socio-economic outcomes,(2) households’ perceptions of their financial security and poverty relative to others, (3) exposure toshocks, including major life events, such as death, migration and unemployment, as well as disruptionsin basic services. SOCIO-ECONOMIC OUTCOMES Figure 1. Changes in Household Income by Source Inflation adjusted incomesremained stable over the lasttwo years. There is a downwardtrend in remittances: inOctober-December 2023remittances accounted forabout 6% of the householdincome, below the all-timeaverage of 10%. Wage incomehas been the main source ofincome since the beginning ofthe survey. Starting February2022, self-employment hasbecome the second mostimportant source of income.They accounted for 35% and27% of total households’income in October-December2023, respectively. Financial security has beenimproving since the inceptionof the survey. The fractionof households who are ableto buy food, pay for utilities,and did not need to reducefood consumption to pay forother needs has continuedto increase in October-December 2023. The fractionof households with savingsdropped by 7 percentagepoints from September toDecember, which may beassociated with purchasinggifts and preparing for end ofthe year celebrations. However,overall financial security,measures as ability to meet allfour above mentioned criteria,increased. The fraction of householdsexperiencing each of the 8dimensions of food insecuritycaptured by the surveydecreased between Octoberand December. The fractionof food secure households:i.e., households which didnot experience any of these 8dimensions – increased. The likelihood to become sickand need a doctor has beenreducing since the inceptionof the survey in December2021. However, there areseasonal spikes: likelihood tofall sick increased in November-December 2023, just like in2022, probably, due to coldweather and flu epidemic. 75% or moreShare of monthly income to pay debtThe fraction of householdsin debt has been increasing.This may be a negativedevelopment, reflectinghouseholds’ inability to coverconsumption needs withoutborrowing. Alternatively, it maybe a consequence of increasedlevel of financial literacy andtrust in the banking system.The share of income dedicatedto paying off loans has been ona downward trend since May2023 (except for a small spikein November). EXPOSURE TO SHOCKS The L2KGZ survey captures two types of shocks: (1) major life events, ranging from death of a householdmember to loss of a job, to return from migration, (2) disruptions in basic utilities: electricity, water,heating, and gas. Kyrgyz families have beenexperiencing decreasingnumber of adverse eventssince the beginning of theL2KGZ survey. This downwardtrend is largely driven by adecreasing likelihood to losea job. However, in the lastquarter of 2023, the fraction offamilies which experienced ajob loss marginally increased:from 2.1% in October to 2.8%in December. There was alsoa seasonal spike in illnesses.Less migrants returned inDecember, compared toOctober. During Q4 of 2023 Kyrgyz households experienced lower disrup