 Bishkek | |
| Currency | Kyrgyz som (KGS) |
|---|---|
| calendar year | |
Trade organisations | WTO,EAEU,OTS,SCO,CIS,ECO |
Country group |
|
| Statistics | |
| Population |  7.3 million (2025)[3] |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
 8% (2025)[5] | |
Population belowpoverty line |  4.4% on less than $3.65/day (2024)[9] |
| 26.4low (2022)[10] | |
| 25 out of 100 points (2024,146th rank)[12] | |
Labour force | |
| Unemployment |
|
Main industries | mining, hydropower, textiles, food processing, chemicals, construction |
| External | |
| Exports | $3.8 billion (2024)[14] |
Export goods | gold, clothing and footwear, foodstuffs, coal, copper ore, refined petroleum, vehicles and auto parts, electronics |
Main export partners |
|
| Imports | $12 billion (2024)[14] |
Import goods | refined petroleum, iron and steel products, chemicals, foodstuffs, vehicles and auto parts, electronics |
Main import partners |
|
FDI stock |
|
| -8% of GDP (2024)[17] | |
Grossexternal debt | $4.5 billion (2024)[14] |
| Public finances | |
| $6.6 billion (2024)[14] | |
| $7 billion (2025)[18] | |
| |
| Revenues | $5.3 billion (2024)[19] |
| Expenses | $4.9 billion (2024)[19] |
All values, unless otherwise stated, are inUS dollars. | |
Theeconomy of Kyrgyzstan is market-oriented, driven by trade, light manufacturing, mining, and agriculture. Since the early 1990s, it has embraced a more open and business-friendly approach than itsCentral Asian peers. Strategically located alongkey overland routes from China to Europe and West Asia, it functions as a major transit andre-export hub. With abundant natural resources and untapped potential inhydropower and tourism, the country is poised for sustainable growth.
Since 2020, Kyrgyzstan has achieved greater political stability after years of turmoil,[22] withSadyr Japarov's leadership marking a pivotal shift. This stability, together with settled border issues,[23] has supported positive economic outcomes.[17] The country sustained strong annual GDP growth of 9% in each of the years 2022, 2023, and 2024. These developments underscore Kyrgyzstan's growing strategic importance inCentral Asia and its emerging role in regional trade and infrastructure networks. The government has launched several major infrastructure projects, notably theKambar-Ata 1 Hydropower Plant and theChina–Kyrgyzstan–Uzbekistan railway — a key component ofthe Belt and Road Initiative — both of which will transform the country's economic landscape.[24]
Kyrgyzstan's long-term growth is supported by favorabledemographics: the population has grown by 2% annually over the past decade, reaching 7.3 million[3] in 2025. Limited domestic employment opportunities continue to drivelabor migration, primarily to Russia. On the positive side, the economy's reliance onremittances — now around 14.6%[25] of GDP — has declined significantly from a peak of 33%,[26] indicating growing internal resilience.
Kyrgyzstan demonstrated strong macroeconomic performance since 2022.[17] Thecountry maintained afiscal surplus for two consecutive years, in 2023 and 2024, reflecting prudent public financial management and stronger-than-expected revenue collection. Higher budget revenues stemmed from increased taxes and customs duties due to rising imports, higher gold prices, and improved tax administration.Government expenditures rose to 34% of GDP in 2024, up from 33% in 2023, driven by higher spending on healthcare, public sector wages, and pensions.[27]
In the first quarter of 2025, Kyrgyzstan reported asignificant fiscal surplus of $528 million, driven by a 84% year-over-year increase in budget revenues. The surplus is expected to support the financing of the public housing program and contribute to reducing external debt.[28]
In recent years, Kyrgyz economy has been affected byinflationary pressures stemming from global supply chain disruptions triggered by the Russia-Ukraine war. Nevertheless, inflation remained relatively contained, supported by a stable som and prudentmonetary policy from theNational Bank of the Kyrgyz Republic. It declined from 10.8% in 2023 to 5% in 2024, before edging up to 6.9% by March 2025.[29] The National Bank has maintained the policy rate at 9% since May 2024.[30] Banking sectorcapital adequacy andliquidity ratios remained strong at 22.3% and 78.8%, well above requirements.[27]
The currency strengthened by 2.3% against the US dollar in 2024, while the real effectiveexchange rate appreciated by 3.6%. Purchases of domestically mined gold and the conversion of nonmonetary gold on the National Bank's balance sheet to reserves increasedgross reserves by a substantial 57.2% to $5.1 billion at the end of 2024, cover for 4.2 months of projected imports, up from 2.4 months in 2023.[31] As of September 3, 2025, international reserves reached $7 billion — an increase of 38% since the start of the year — covering 5.7 months of imports, comfortably above international benchmarks.[32]
Kyrgyzstan's totalpublic debt stood at $6.6 billion as of 31 December 2024, representing 37.6% of GDP for the year, down from 42% in 2023. Total external public debt amounted to $4.5 billion, or 25% of GDP,[33] funded primarily by official bilateral and multilateral creditors at concessional rates and with long maturities. This significantly limits the potential for nonresidentcapital flight in an adverse scenario, thereby mitigating external vulnerabilities.[34][35]
Kyrgyzstan's largest external creditors areExport–Import Bank of China ($1.65 billion or 36% of gross external debt),Asian Development Bank (16%),World Bank (16%), theIMF (8%), theEurasian Development Bank (6%). The average weighted interest rate on external public debt was 1.57% per annum.[36]
Kyrgyzstan's trade landscape has evolved significantly in recent years, marked by substantial growth inexports and a notable shift in trade partnerships. In 2024, Kyrgyzstan's total exports reached $3.8 billion, representing a 13% increase compared to 2023.[37] The nation's principal exports include gold, coal, copper ores, textiles, foodstuffs, vehicles and automotive parts, and electronics. Gold remains Kyrgyzstan's dominant export commodity, with the state-ownedKumtor gold mine serving as a key source of foreign exchange and budget revenue.[38]
Kyrgyzstan's principal imports include refined petroleum, iron and steel products, vehicles and automotive parts, electronics, chemical products, and a broad range of foodstuffs. In 2024, total imports reached $12 billion, with a significant portion of these goods beingre-exported.[39]
Kyrgyzstan'scurrent account deficit for 2024 is estimated at 30.7% of GDP. However, theIMF attributes approximately 23 percentage points of GDP to unrecorded re-exports of goods, primarily related to transit trade within theEAEU. After adjusting for these flows, the underlying current account deficit is estimated to be closer to 8% of GDP.[17]
A significant development in Kyrgyzstan's export profile is the surge in fuel exports toAfghanistan. In the first quarter of the year, Kyrgyzstan exported more than 40 million liters of gasoline and fuel oil to Afghanistan, a more than 100-fold increase compared to the same period in 2024.[40] Beyond fuel, Kyrgyzstan's exports to Afghanistan include a range of goods, such as agricultural products (like dried legumes and flour), construction materials (like cement and metal structures).
Kyrgyzstan historically occupied an important position on theGreat Silk Road, the ancient trade route connecting China and theMediterranean. Goods and caravans passed through the region, blending diverse cultures and traditions. In the modern era, Kyrgyzstan became the first Central Asian country to join theWorld Trade Organization (WTO), gaining membership in 1998. Since 2015, it has also been a member ofEurasian Economic Union (EAEU). This dual membership enables Kyrgyzstan to function as a strategic transit hub in Eurasian trade.[41]
The country act as are-export platform,[42] particularly for goods from China,Türkiye,South Korea and theUAE, which are imported at low WTO tariffs andre-exported to other EAEU countries — primarily Russia and Kazakhstan — without additional duties or customs checks. Kyrgyzstan's lower external tariff regime allows goods to enter the EAEU more cheaply than through other member states.[43]
This role has grown in importance since 2022, asWestern sanctions on Russia spurred a surge in parallel imports via Kyrgyz territory. The result has been strong economic growth and improved fiscal performance. From 2021-2024, the Kyrgyzstan's goods imports more than doubled — from $5.2 billion to $12 billion — driven almost entirely by imports of passenger cars, smartphones, and household electrical appliances. China accounts for nearly 60% of this increase, while European countries contribute around 8%. Most of these goods are likely re-exported to Russia and other EAEU members, with limited domestic use.[42]
Because Kyrgyzstan and Russia share customs-free zone under the EAEU, trade statistics do not fully capture Kyrgyzstan's exports to EAEU partners, as no conventional customs declarations are required. This makes it difficult to quantify re-exports. Nevertheless, the re-export model supports a wide range of sectors within the Kyrgyz economy, includinglogistics, warehousing, transportation,customs brokerage, and wholesale trade.[42]
In August 2024, the Kyrgyz government established theTrading Company of the Kyrgyz Republic to monitor trade involving Kyrgyz companies whose goods do not physically enter the country. This strategic step reflects broader efforts to regulate trade and financial flows, amid heightened scrutiny over re-export activities and international sanctions compliance.[44]
Agriculture remains a significant part of the economy, employing a large portion of the workforce and having represented 12.4%, 11.0% and 8.6% of GDP in 2022, 2023 and 2024, respectively. Key agricultural products include wool, milk, cotton, tobacco, and fruits.[45]
Subsistence farming increased in the early 2000s. After sharp declines in the early 1990s, agricultural production by the early 2000s was approaching 1991 levels.Grain production in the lower valleys andlivestock grazing on upland pastures constitute the largest share of the agricultural workforce. Farmers are shifting toward grain cultivation and away fromcotton andtobacco. Other important products includedairy,poultry,hay, animal feed,potatoes,vegetables, andsugar beets.[46]
Kyrgyzstan's major agricultural crop production in 2024:[47]
Kyrgyzstan is now largely food self-sufficient,[48] particularly in dairy, eggs, sugar, vegetables, potatoes, and meat. Despite ongoing growth in domestic production of grain, vegetable oil, fruits, and berries, Kyrgyzstan remains reliant on imports for approximately 50% of its consumption of these commodities.[46]
Only 4% of Kyrgyzstan is classified as forested. All of that area is state-owned, and none is classified as available for wood supply. The main commercial product of the forests is walnuts.[49] TheArslanbob walnut forest is the largest natural walnut forest in the world, located in the Jalal-Abad Region of Kyrgyzstan, on the western slopes of the Fergana andChatkal mountain ranges. Covering approximately 11,000 hectares of dense walnut groves, the broader forest zone, which includes other tree species, extends over 600,000 to 700,000 hectares. Each mature tree can yield 150 to 400 kilograms of walnuts annually. Kyrgyzstan is a major regional exporter of walnuts, with significant shipments to Russia, Iran, and Turkey. In some years, up to 25% of Russia's walnut imports come from Kyrgyzstan.
Kyrgyzstan'saquaculture industry has rebounded strongly since its collapse in 2003, growing from just 12 metric tons to over 20,000 tons by 2022. Total fish production reached 33,600 tons in 2023, with exports exceeding 5,500 tons, signaling expanding regional market opportunities. This growth is driven by investments in technology, sustainable farming of cold-water species, and the country's rich freshwater resources. Kyrgyzstan is increasingly positioned as akey freshwater fish exporter in Central Asia, enhancing both its economy and food security.
Mining — particularlygold extraction — plays a central role in the Kyrgyz economy. The state-ownedKumtor gold mine is one of the largest gold deposits in the region. Beyond gold, Kyrgyzstan is rich incritical raw materials[50] essential for modern technologies, including substantial reserves ofantimony — a key mineral for the electronics and defense industries.
Promising new gold projects at Jerooy, Taldy–Bulak, and recent discoveries like Tokhtonysay highlight the country's strong potential for expanding gold production.
Kyrgyzaltyn, the state-owned mining agency, manages all mines, often partnering with foreign investors to bring expertise and capital, supporting modernization and growth.
Although uranium and antimony production have declined since Soviet times, Kyrgyzstan's extensive coal reserves—estimated at 2.5 billion tons—offer significant opportunities to boost domestic energy supply, with theKara Keche coal deposit poised to increase annual coal output substantially.
While oil and natural gas production remain limited, the country's rich mineral base positions it well for tapping into critical raw materials essential for emerging technologies and the green energy transition. Exploration efforts targeting rare earth elements and industrial metals are gaining momentum, signaling promising prospects for future development.
Following the collapse of theSoviet Union, Kyrgyzstan's manufacturing sector experienced a sharp decline due to disrupted supply chains and the loss of traditional markets. However, since the early 2020s, the sector has shown signs of recovery and structural transformation, remaining a key contributor to the economy by accounting for approximately 12.6% of GDP in both 2023 and 2024, slightly down from 13.6% in 2022.
Metallurgy is the main component of the manufacturing sector, particularly through gold production, which is a major export commodity. Metallurgy accounted for approximately 21% of the manufacturing sector in 2024. Production of food products (beverages) and tobacco, which is focused on processing agricultural products into consumer goods, accounted for approximately 19.4% of the manufacturing sector in 2024. Textile production, production of wearing apparel and footwear, leather and other leather goods, which is focused on garment manufacturing, accounted for approximately 4.5% of the manufacturing sector in 2024. Production of rubber and plastics items and other non-metallic mineral products, which comprises producing a variety of goods for domestic and regional markets, represented approximately 10.5% of the manufacturing sector in 2024. Production of refined petroleum products accounted for approximately 8.5% of the manufacturing sector in 2024.
Renewed investment in mining, energy, and light manufacturing, supported by state programs like the100 Industrial Enterprises initiative[51] has driven a revival in Kyrgyzstan's manufacturing sector. Growth has been particularly strong in mining (especially gold and coal), electricity generation, small-scale hydropower, and light industries like textiles and food processing. Automotive assembly[52] and domestic production of construction materials[53] are also emerging as growth areas.
The construction sector in Kyrgyzstan has been a significant contributor to the nation's economy in recent years, demonstrating consistent growth and playing a pivotal role in overall economic development. The construction sector's growth has been driven by both public and private investments in infrastructure projects, residential housing, and commercial developments. Government initiatives aimed at improving transportation networks, energy infrastructure, and urban development have significantly strengthened the sector. The construction sector provides jobs to a substantial portion of the workforce. Its expansion has had amultiplier effect on related industries, including manufacturing, services, and real estate, thereby contributing to broader economic growth.
Construction accounted for 9.3%, 7.3%, 7.1%, 7.3% and 8.3% of Kyrgyzstan's GDP in 2020, 2021, 2022, 2023 and 2024, respectively. In 2024, the sector grew by 39.7% in real terms compared to 2023, driven by an increase in construction and reconstruction of facilities in mining, provision (supply) of electricity, gas, steam, water supply and treatment, waste treatment, hotels and restaurants.
Housing construction has also seen significant expansion, driven by population growth, urbanization, and remittance-fueled demand. Rising domestic production of construction materials and increased private investment have contributed to this boom,[54] turning housing construction into one of the key engines of non-extractive economic activity.
Over 90% of Kyrgyzstan's electricity generation relies onhydropower, primarily from large cascade plants on theNaryn River. However, the country has historically exploited less than 15% of its estimated hydroelectric potential of approximately 140 TWh annually. As of 2024, hydropower accounted for around 90% of all electricity production, with small hydroelectric plants contributing approximately 156 million kWh alongside 12.77 billion kWh from large hydro facilities.[55]
Kyrgyzstan has limited domesticfossil fuel reserves and heavily depends on natural gas imports from Uzbekistan. Thermal (coal- and gas-fired) plants supplied 1.76 billion kWh in 2024, while hydropower produced 12.77 billion kWh; the country imported 3.6 billion kWh to meet rising demand of 18.3 billion kWh.[55]
The country's infrastructure is aging: the national grid includes over 45,000 km of transmission lines, largely built during Soviet-era expansion.
Kyrgyzstan is actively expanding both large and small hydropower projects. The proposedKambar-Ata-1 project — a 1,860 MW dam on the Naryn River— has received roadmap support from Kyrgyzstan, Kazakhstan, and Uzbekistan and secured at least US $18.6 million in World Bank development funding by mid-2024. When operational (expected by 2028), it is projected to generate 5.6 billion kWh annually, enabling year-round domestic supply, seasonal export capacity, and support for theCASA-1000 transmission corridor.[56]
Small hydropower capacity is also scaling up: private plants are expected to reach 400–500 MW by 2027–2028, adding roughly 600 million kWh annually.[57] The country is also beginning to diversify its energy mix with solar and wind: a 200 MW solar plant near Tokmok is expected by 2025, and additional solar (400 MW) and wind (100 MW) projects are in development as of 2024.[58]
Hydropower remains the backbone of Kyrgyzstan's energy sector, with ongoing diversification and modernization efforts aimed at reducing energy losses, enhancing self-sufficiency, and boosting exports to neighboring countries.
Kyrgyzstan'stourism sector, centred on the scenicIssyk-Kul Lake and mountain trekking, has seen impressive growth over the past two decades. From attracting around 450,000 tourists annually in the early 2000s,the country welcomed over 8.6 million visitors in 2024. This rapid growth has boosted tourism service exports to nearly $480 million in the first half of 2024 alone.
Visitors primarily come from neighboring Central Asian countries like Kazakhstan, Uzbekistan, and Russia, but there is a growing number of tourists fromGulf countries, China, South Korea, Türkiye, and Europe. Despite earlier challenges related to limited investment, the sector is benefiting from improved infrastructure, easier visa regulations, and targeted government promotion.
The financial sector in Kyrgyzstan plays a critical role in supporting economic diversification. Banks and microfinance institutions provide much-needed credit and financial services to small and medium-sized enterprises (SMEs) and rural entrepreneurs. Microfinance, in particular, has expanded rapidly, increasing financial inclusion and empowering grassroots economic activity.
Since gaining independence, Kyrgyzstan has undertaken gradual reforms to improve its investment climate, emphasizing legal guarantees, market openness, and political stability. The country has adopted a liberalLaw on Investments, which provides protections such as non-discrimination, safeguards againstexpropriation, and the right to repatriate profits. The creation of theInvestment Promotion Agency and theBusiness Ombudsman office has further enhanced investor confidence.[59]
Kyrgyzstan is also a member of theEurasian Economic Union, providing investors access to a larger regional market. It has signed over 30 bilateral investment treaties, including with the United States, China, and several EU countries.[60]
According to the World BankDoing Business Report, Kyrgyzstan ranked 80th globally in 2020, performing especially well in areas such as starting a business (42nd), registering property (7th), and getting credit (15th).[61]
Foreign direct investment (FDI) inflows amounted to $1 billion in 2024.[16]
Promising areas for investment include hydropower, logistics, agriculture, textiles, and information technology. As part of its commitments under theParis Agreement, Kyrgyzstan has also opened its energy sector to green and low-carbon investment.[62] Political stability in recent years has supported sustained reforms and economic diversification. TheEBRD notes ongoing efforts in infrastructure, urban development, and tax modernization as key drivers of investor interest.[59]
While challenges remain — such as limited judicial independence and financial sector vulnerabilities — the overall investment climate continues to improve, reflecting Kyrgyzstan's efforts to align with global standards and attract long-term capital.
Political stability in Kyrgyzstan has shown notable improvement since the early 2020s, following a period characterized by recurring unrest and rapid leadership turnover. The 2020 political upheaval, which culminated inSadyr Japarov assuming power, marked a turning point in the country's governance trajectory.[63] Since then, the government has undertaken measures to consolidate state authority and address regional tensions.
In 2022, Kyrgyzstan andUzbekistan signed agreements finalizing the delimitation of their shared border, and in 2025, a similar accord was reached withTajikistan, ending long-standing disputes in theFergana Valley.[64][65] These agreements resolved territorial claims that had periodically sparked violence and disrupted trade.
Improved political stability and the resolution of border disputes have had notable economic implications. The removal of barriers in the Fergana Valley has facilitated cross-border trade and reduced transport disruptions, while enhanced security has encouraged investment in regional infrastructure such as road links, customs facilities, and logistics hubs.[66] According to theWorld Bank, political predictability and reduced regional tensions have supported modest growth in foreign direct investment, particularly in mining, hydropower, and transportation.[67]
Labour migration is a significant economic factor for Kyrgyzstan, with Russia being the main destination due to shared language, cultural ties, and membership in theEAEU. Kyrgyz migrants benefit from easier access and better work opportunities compared to migrants fromUzbekistan andTajikistan, largely because of their proficiency in Russian and the advantages provided by EAEU membership.[68] Other destinations include Türkiye, South Korea, and the UAE, though in smaller numbers.
Migrants from Kyrgyzstan mainly work in construction, trade, and services abroad, particularly in Russia, sending remittances that have historically accounted for around 30% of the country's GDP. These inflows have played a critical role in supporting household incomes and reducing poverty. However, dependence on external labor markets exposes the country to risks from foreign policy shifts and economic downturns. Encouragingly, reliance on labor migration and remittances has been gradually declining due to domestic economic development and income diversification.[69]Remittances now account for approximately 14.6%[25] of GDP down from a peak of 33%,[26] reflecting growing internal economic resilience.
In 2024, thepoverty rate at the $3.65-per-day threshold fell to 4.4%, down from 7.1% in 2023, supported by lower inflation and robust economic growth. However, rising urban poverty is a concern: by 2022/23, urban poverty levels had surpassed those in rural areas. According to the L2KGZ survey, 50% of respondents identified jobs as the top economic challenge, while real household incomes stagnated in the latter half of 2024.
United Nations World Food Programme (WFP) reports that approximately 30% of Kyrgyzstan's population lives in poverty, with an additional 10% at risk of falling below the poverty line. The WFP highlights vulnerability to both internal and external shocks, including high dependence on food imports, reduced remittances due to changing labor migration policies; particularly inRussia; and climate-related challenges such as drought and glacier melt. Food prices remain around 50% higher than pre-pandemic levels, leaving 36% of the population unable to afford a nutritious diet, while 72% of households resort tocoping mechanisms to cover basic needs.[70]
| Sovereign states |
|
|---|---|
| States with limited recognition | |
| Dependencies and other territories | |
