According to the published data, Kyrgyzstan became the fastest-growing economy in Central Asia in 2025. The main factors behind this growth were high domestic demand and investments that were able to offset the decline in exports. The construction sector showed strong growth at 21.1% year-on-year, driven by investments in infrastructure, including transport, warehouses, energy, and the mining industry.
The strengthening of industrial production by 10.6% was also a result of increased activity in the manufacturing and mining sectors. High levels of household consumption were supported by rapid growth in lending, rising real wages, and significant remittances.
However, the EBRD also notes that the high level of consumer demand and rising utility tariffs contributed to increased inflationary pressure, which amounted to 9.4% by the end of 2025. After several months of rising inflation in the middle of the year, the National Bank of Kyrgyzstan began tightening monetary policy, raising the discount rate by 200 basis points to 11% by November 2025. The country's budget showed a surplus due to stable revenue growth, and international reserves increased to $8.6 billion, providing protection against external economic shocks.
The EBRD forecasts that in the short term, the economy will remain on a stable growth path, benefiting from the recovery of exports and the implementation of large infrastructure projects, which should promote investment and improve transport accessibility. However, inflationary pressure remains a significant risk to slowing growth rates.
We remind you that the Ministry of Economy of Kyrgyzstan expects GDP growth of 8.6% for the republic in 2026.
