Economy of Kyrgyzstan

Main article: Kyrgyz Republic (Kyrgyzstan)

GDP

2024: GDP growth by 9% to 1.52 trillion soms

In 2024 GDP Kyrgyzstan , it reached 1.52 trillion soms (about $17.73 billion at the exchange rate as of March 21, 2025) - this is 9% more compared to the previous year. The growth is provided by the industries of commodity production, the service sector and taxes on products. Such data are given in the materials of the National Statistical Committee of the Kyrgyz Republic, which TAdviser I got acquainted with at the end of March 2025.

Over the year, Kyrgyzstan's GDP increased by 9%

In the structure of GDP, the largest share - 52.1% - fell on the industries providing services. In particular, wholesale and retail trade, as well as the repair of cars and motorcycles, provided a contribution of 17.6% to the total GDP. Approximately 3.1% was the share of transport activities and cargo storage services, 2.1% - hotels and restaurants. The indicator of the information and communication segment was recorded at 2.4%. The total contribution of other types of services is 26.9%. The industries producing goods accounted for 33.4% of the GDP structure. The distribution across the different segments is as follows:

• Agriculture, forestry and fishing - 8.6%;
• Industry - 16.5%;
• Production of useful minerals - 2%;
• Manufacturing (manufacturing) - 12.6%;
• Provision (supply) of electricity, gas, steam and conditioned air - 1.7%;
• Water supply, treatment, waste treatment and production of secondary raw materials - 0.2%;
• Construction - 8.3%.

According to the statistical committee, in 2024 the increase in consumer prices and tariffs in Kyrgyzstan as a whole amounted to 6.3% compared to 2023. At the same time, prices for alcoholic beverages and tobacco products increased by 11.4%, non-food products - by 5.1%, food products and soft drinks - by 5.4%, tariffs for services provided to the population - by 8.1%.^[1]

2023: GDP growth of 6.2% to $13.42 billion

The gross domestic product of Kyrgyzstan in 2023 exceeded 1.2 trillion soms, which is equivalent to about $13.42 billion as of March 4, 2024. Compared to the previous year, the figure increased by 6.2%, as stated in the report of the National Statistical Committee of the Kyrgyz Republic, published on January 16, 2024.

The study says that GDP growth is provided by the sectors of commodity production, services and taxes on products. The services segment recorded an increase of 6.2%, in the field of commodity production - by 3.6%, in the direction of taxes on products - 12.7%.

Kyrgyzstan's GDP exceeded 1.2 trillion soms

The growth in industrial production compared to 2022 was ensured by an increase in the production of rubber, plastic products and building materials (1.7 times), pharmaceutical products (by 34.9%), wooden and paper products, printing activities (by 19.6%), textile products (by 19.2%), chemical products (by 11.8%), refined petroleum products (by 8.9%), food products (including drinks) and tobacco products (by 5.7%).

The share of industries producing goods was 32.3% and decreased by 2.9% on an annualized basis. At the same time, the share of industry amounted to 16%, reducing by 1.1%, and the share of agriculture amounted to 9.7% and decreased by 1.3%.

In 2023, the increase in consumer prices and tariffs in the republic as a whole amounted to 7.3% compared to the previous year. At the same time, prices for non-food products increased by 12.2%, alcoholic beverages and tobacco products - by 11.3%, food products and soft drinks - by 3.4%, tariffs for services provided to the population - by 9.1%. Most of all in 2023, rice prices increased - by 39.9% compared to 2022, fresh fruits - by 23% and confectionery - by 9%.^[2]

2022: Up 7 % to $10.5 billion

The gross domestic product (GDP) of Kyrgyzstan in 2022 amounted to 919.4 billion soms ($10.5 billion), which is 7% more than a year earlier. Prime Minister of the Republic Akylbek Japarov named such indicators on March 24, 2023.

According to him, in conditions of economic instability and uncertainty, a number of international institutions previously predicted a fall in GDP Kyrgyzstan - World Bank by 5%, - International Monetary Fund 0.9%). Despite these forecasts, the Kyrgyz economy showed positive dynamics throughout the reporting period.

Japarov noted that without taking into account the enterprises developing the Kumtor gold deposits, the GDP for 2022 amounted to about 864 billion soms ($10.1 billion) and increased by 5.9%.

The largest share in the structure of GDP (45.5%) fell on the industries providing services, the volume of which in 2022 increased by 1.5 percentage points. At the same time, the share of industries producing goods during this period, on the contrary, decreased by 3.5 percentage points and amounted to 38.6%.

At the same time, the share of agriculture in the structure of GDP decreased by 2.6 percentage points, construction - by 0.6 percentage points and industry - by 0.3 percentage points. The volume of industrial products increased by 14% due to an increase in the output of basic metals (by 30%), wooden and paper products, printing activities (29.3%), petroleum products (14.4%), food products (including drinks) and tobacco products (11.2%), in textile production, production of clothing and footwear, leather and leather products (5.9%), in mining (by 8.5%).

At the same time, the National Statistics Committee noted that by the end of 2022, compared with the indicators of a year ago, prices and tariffs in the republic as a whole increased by 13.5%.^[3]

2020

Trade with Russia accounts for 16.9% of Kyrgyzstan's GDP

8.6% reduction

in GDP Kyrgyzstan 2020, it decreased by a record 8.6% due to the consequences of the coronavirus pandemic COVID-19. This is evidenced by the data of the National Committee of Statistics of the Republic.

The rate of decline in the Kyrgyz economy in 2020 was significantly higher than the forecasts of the government (5.3%)  and the Eurasian Development Bank (7.5%).

The gross domestic product of Kyrgyzstan in January-December 2020 amounted to 598 billion soms, and excluding enterprises for the development of the Kumtor field - 530 billion soms.

 By the end of 2020, the volume of industrial products exceeded 319 billion soms and decreased by 6.6% compared to the previous year, largely due to a decrease in the production of petroleum products (59.3%), textile, clothing and footwear, leather and leather products (by 21.5%), wooden and paper products, printing activities (by 13.2%), rubber and plastic products, other non-metallic mineral products (7%), food products (including beverages) and tobacco products (6.6%), basic metals and finished metal products, except machinery and equipment (by 4.4%), as well as in mining (by 22.4%).

Negative trends were observed in construction, where the decrease in volumes was 15.9%, wholesale and retail trade - 16.1%, while in agriculture, on the contrary, there was an increase of 1.1%.

In January-December 2020, the increase in consumer prices in the republic as a whole amounted to 9.7%. Prices for food products and soft drinks increased by 17.6%, alcoholic beverages and tobacco products - by 6.7%, tariffs for services provided to the population - by 3%, prices for non-food products - by 2.4%.

According to the National Statistics Committee, the maximum increase in consumer prices and tariffs in 2020 (11.8%) was recorded in the Talas region, which is due to the largest increase in prices for food products and soft drinks (by 23.5%).^[4]

Public debt: 56% of GDP

External debt

2024: Turkey wrote off Kyrgyzstan's external debt by $62.3 million, in exchange for green economy projects

Turkey wrote off an external debt Kyrgyzstan of $62.3 million in exchange for green economy projects, President of the Republic Sadyr Japarov said in November 2024 following talks with Turkish President Erdogan.

Transfers from abroad

2024: Increase in remittances from Russia by 12% to $2.6 billion

In 2024, the volume of remittances from Russia to Kyrgyzstan increased by 12% compared to the previous year, amounting to almost $2.6 billion. These data were published by the Central Bank of Kyrgyzstan at the end of January 2025.

According to RBC, the growth of transfers to Kyrgyzstan is observed against the background of a decrease in the volume of remittances to other CIS countries, such as Kazakhstan, Georgia and Armenia. Kyrgyzstan stands out among them by the high number of labor migrants working in Russia, which, according to experts, contributes to an increase in the volume of remittances to the country. All transfers from Russia account for almost the entire amount of remittances to Kyrgyzstan, which is confirmed by statistics.

Kyrgyzstan

The Central Bank of Kyrgyzstan provides data on transactions that are carried out through money transfer systems, banking mobile applications and electronic wallets. This shows how important the variety of available channels for funds transfers is, which in turn contributes to the growth of transactions.

Despite the general tendency to reduce the volume of transfers to the CIS countries, Kyrgyzstan not only maintains a stable position, but also demonstrates growth. This is due to a number of factors, among which it is worth highlighting the high level of labor migration from Kyrgyzstan to Russia. The senior partner of the Nordic Star law firm, Andrei Gusev, noted that many labor migrants from Kyrgyzstan, working in Russia, actively use transfers of funds to their country. In addition, over time, the circle of persons who received Kyrgyz citizenship has significantly expanded, which also increases the number of transactions. According to expert Chirkin, the growing number of citizens who received a Kyrgyz passport and live in the country makes Kyrgyzstan's banks more convenient for transfers, which contributes to an increase in cash flow.

After the abolition of international payment systems Visa and Mastercard in Russia, transfers from cards to cards between countries became impossible. In this regard, by the end of 2024, transfers of funds from Russia to Kyrgyzstan became available only through international money transfer services, electronic wallets and internal functions of banks. In particular, systems such as the Golden Crown and Unistream offered solutions for transferring funds to Kyrgyzstan, as well as some Russian banks developed their own ways to transfer funds to this country.^[5]

2023: Decrease in transfers from Russia by 14% to $2.53 billion

At the end of 2023, Russian citizens transferred approximately $2.53 billion to Kyrgyzstan. This is about 14% less than the result for the previous year, when the volume of transactions was estimated at $2.94 billion. Such indicators in mid-February 2024 are disclosed by the National Bank of the Kyrgyz Republic.

The report says that in 2023 a total of $2.71 billion was received from Kyrgyzstan from abroad. Thus, transfers from Russia accounted for 93.5% of the total volume of transactions carried out. Another approximately $45.3 million came from the United States, which corresponds to a decrease of 17.5% compared to 2022. Transfers from Turkey increased by 35.6% on an annualized basis, reaching $17.5 million. $16.7 million was transferred from Kazakhstan, which corresponds to an increase of 1.7 times in relation to 2022.

Citizens of the Russian Federation transferred to Kyrgyzstan about $2.53 billion

At the same time, approximately $561.2 million was transferred from Kyrgyzstan to other countries in 2023. For comparison: a year earlier, this figure was $1.2 billion. Thus, a drop of about 53% was recorded. Most of the funds from the republic were sent to Russia - $482.4 million (a decrease of 1.9 times on an annualized basis) and Turkey - $66.5 million (a decrease of 3.5 times compared to 2022).

In 2023, the net inflow of remittances to Kyrgyzstan reached $2.14 billion, which is 14.5% more than in the previous year. At the end of 2022, the volume of remittances of citizens to the republic amounted to $3.09 billion, from the country - $1.21 billion. Thus, net inflows were estimated at $1.87 billion.

At the same time, on February 15, 2024, the National Bank of the Kyrgyz Republic introduced the circulation of banknotes in denominations of 20, 50 and 100 soms of the new fifth series of the national currency of the 2023 model. They have a three-level complex of protective elements that are said to effectively prevent counterfeiting.^[6]

2022: Transfer of a record $2.6 billion from Russia to Kyrgyzstan during the conflict in Ukraine

From Russia to Kyrgyzstan for 11 months of 2022, against the background of the conflict in Ukraine, individuals transferred a record amount of about $2.6 billion.

2020: Transfers from abroad account for 29.2% of GDP

In the economies of Kyrgyzstan and Tajikistan, foreign remittances from individuals play an extremely important role - mainly from citizens working in neighboring countries who send money to their families. In Tajikistan, such transfers account for 28.2% of national GDP, in Kyrgyzstan - 29.2% (data for June 2020).

Inflation

2022: Inflation in November - 15.4%

Banks

Main article: Banks in Kyrgyzstan

Power

2024

Rosatom signed a contract for the construction of a hydroelectric power station in Kyrgyzstan

On September 12, 2024, Rosatom Service (an enterprise of the electric power division of Rosatom State Corporation), the Russian-Kyrgyz Development Fund and Alfa Oil LLC signed an agreement on the construction of a small hydroelectric power station in the Kyrgyz Republic. We are talking about the Chandalash complex, which will be located in the Jalal-Abad region. Read more here

Agreement on the construction of the Kambartinsky GES-1

In June 2024, Kazakhstan, Kyrgyzstan and Uzbekistan signed an agreement on the construction of the Kambaratinsky GES-1 on the Naryn River at the international investment energy forum in Vienna.

This is the largest energy facility from the Kambaratinsky HPP cascade, which provides for the construction of a 256 m high dam and an 1860 MW HPP with a total reservoir capacity of 5.4 billion m³ of water.

According to Kyrgyz President Sadyr Japarov, success in the construction of the hydroelectric power station will ensure energy security and independence of the entire Kyrgyzstan after commissioning.

Earlier, Kyrgyzstan tried to complete the construction of the hydroelectric power station for more than 10 years. The involvement of the neighboring countries of Kyrgyzstan in the implementation of the project, re-launched in 2022, is not accidental. Kyrgyzstan is now free to make decisions on the supply of water to neighboring countries.

The shortage of electricity in the country forced Bishkek, in exchange for electricity supplies, to send the amount of water resources necessary to generate the same electricity to Uzbekistan and Kazakhstan (for agricultural needs).

Bishkek was regularly blackmailed by its neighbors by the fact that if the HPP project begins to be implemented and this changes the regulation of river flow, then electricity supplies will be stopped in conjunction with other pressure measures.

However, in 2024, the Kyrgyz authorities decided to build a small nuclear power plant and renewable power facilities with the help of Rosatom. This will allow Kyrgyzstan to ensure its energy independence, and without building a GES-1, and become a leader in electricity generation in the region.

Tashkent and Astana, having missed such initiative, were forced to quickly join the project for the construction of a hydroelectric power station, as well as intensify the issue of building their nuclear power plants in order to avoid electricity dependence on Kyrgyzstan in the future. As a result, Uzbekistan agreed with Rosatom on the construction of a low-capacity nuclear power plant, and a referendum on this issue is expected in Kazakhstan in the fall of 2024.

After the signing of the June agreement, the Chairman of the Cabinet of Ministers of Kyrgyzstan Akylbek Japarov said that there would no longer be a "show" in Central Asia due to water resources. Moreover, the full launch of the Kambaratinsk GES-1, taking into account the successful implementation of the CASA-1000 project (Central Asia - South Asia), will allow Kyrgyzstan to sell electricity outside the region and actually become the main regional electricity supplier.

As a result, at least part of the contradictions that have arisen in relations between the countries of the region since their independence and the destruction of the unified energy system of the USSR are removed. Moreover, cooperation between the countries will now take place on a more parity basis.

It is also important that the rapprochement of the CA countries is correlated with the overall energy strategy of the CIS countries promoted by Russia, since the implementation of the project will create conditions for strengthening cooperation between the countries of Central Asia, as well as for the confident consolidation of Rosatom in the region.

2020: Very low energy consumption per capita

and

Agriculture

2024

Kyrgyzstan increased annual production of agricultural products by 20% to 87.3 billion soms

Agricultural production in Kyrgyzstan in 2024 increased by 20%. This was announced in March 2025 at the Ministry of Agriculture of the republic. According to the ministry, the agricultural sector showed steady growth compared to 2023.

According to Tazabek, by the end of 2024, food products, including drinks and tobacco products, were produced in the agricultural processing industry of Kyrgyzstan in the amount of 87.3 billion soms (about ₽94,3 billion). This figure by 16.1 billion soms (approximately ₽17,4 billion) exceeds the results of 2023.

Kyrgyzstan recorded a 20 percent increase in annual agricultural production

The Ministry of Agriculture notes that the growth rate in the agricultural processing sector was 120.1%. This indicator indicates a significant increase in the volume of processing of local agricultural raw materials and the development of the country's food industry.

A significant increase in agricultural production and the development of the processing industry were also accompanied by infrastructure improvements in the industry. In the period from January to December 2024, the number of trade and logistics centers in Kyrgyzstan increased by 2 units compared to 2023 and reached 34. These centers play an important role in ensuring an efficient system of storage, transportation and sale of agricultural products, helping to reduce losses and improve product quality.

The development of the agricultural sector is of strategic importance for Kyrgyzstan, as it contributes to ensuring the country's food security, creating new jobs in rural areas and increasing export potential. The expansion of the network of trade and logistics centers also contributes to improving farmers' access to sales markets and increasing the competitiveness of Kyrgyz agricultural products.^[7]

Ministry of Agriculture of Kyrgyzstan created a state-owned company for the digitalization of the agro-industrial complex

On October 21, 2024, the ministry agriculture Kyrgyzstan announced the creation of the Agro-Smart state enterprise with an authorized capital of 50 million soms (about 56 million). rubles The new company is designed to become a key tool in the process of digitalization of the country's agro-industrial complex, centralizing information flows and providing farmers with access to a single database. More. here

2019: Low use of pesticides in agriculture

Potato production per capita

1. Belarus - 631.3 kg per 1 person

2. Ukraine - 487.4 kg

3. Netherlands - 384.8 kg

4. Denmark - 343.3 kg

5. Belgium - 299.2 kg

6. Latvia - 251.3 kg

7. Kyrgyzstan - 230 kg

8. Poland - 229.8 kg

9. Russia - 216.8 kg

10. Kazakhstan - 208.5 kg

Logistics

Transport corridor to Russia through Turkmenistan

From July 2023, Uzbekistan and Kyrgyzstan can use the new multimodal transport corridor to Russia and back bypassing Kazakhstan through the Caspian Sea.

Foreign trade

Main article: Foreign trade of Kyrgyzstan

Investments

2024: Russia increases direct investment in Kyrgyzstan by 46%

In 2024, the growth of direct investment in Kyrgyzstan from Russia amounted to about 46%. This was announced on January 17, 2025 by the trade representative of the Russian Federation in the Kyrgyz Republic Ainur Samanov.

According to him, at the end of 2024, the number of companies with Russian capital in Kyrgyzstan exceeded 1250, and this figure continues to increase. Samanov emphasizes that in terms of the number of enterprises with foreign participation, Russia is the absolute leader in the Kyrgyz Republic.

Bishkek

Kyrgyz Ambassador to the Russian Federation Kubanychbek Bokontaev notes that Russia has become one of the main investors in the republic. The growing interest of Russian companies in this country is explained by several reasons. This, in particular, is the holding of a large number of bilateral business events and the opening of joint platforms, integration processes within the EAEU, as well as favorable conditions that the republic's authorities seek to create for Russian capital.

According to Rossiyskaya Gazeta, business from the Russian Federation is represented in Kyrgyzstan in many industries, including industry related to power, metallurgy, mechanical engineering and chemical production. In the future, it is expected that Russian participation in the real sector of the republic's economy will increase. This opportunity opens up cooperation in the field of industrial technology parks and free economic zones. The Kyrgyz authorities express their readiness to provide maximum assistance to investors from the Russian Federation.

We are very glad that Russian private business, investors, paid attention to the capabilities of Kyrgyzstan and intensified their work. We are always open to Russian investments and are ready to provide maximum assistance in the implementation of projects, - said the head of the Cabinet of Ministers of the republic Akylbek Japarov.[8]

IT market

Digital Kyrgyzstan

Main article: Digital Kyrgyzstan

Information security in Kyrgyzstan

Main article: Information security in Kyrgyzstan

2023: Kyrgyzstan was the first in the world to develop an IT code. It is needed to combine all digital norms into a common legal field

On July 11, 2023, it became known that Kyrgyzstan was the first in the world to develop the so-called Digital Code. The main goal of the initiative is to combine all digital norms into a common legal field. Read more here.

Communication and Internet

2025: Completion of the megaproject for laying the fiber-optic fiber

On February 6, 2025, the telecommunications operator Kyrgyztelecom announced the completion of the Digital CASA megaproject aimed at developing the national digital ecosystem in Kyrgyzstan. As part of the initiative, more than 3000 km of fiber-optic communication lines (FOCL) were laid. Read more here

2024

Passing a law banning webcam

At the end of July 2024, President of Kyrgyzstan Sadyr Japarov signed a law prohibiting undressing on a webcam to earn money and providing for responsibility for "organizing and promoting prostitution and debauchery through Internet networks (webcam studios)."

For activities in the webcam industry in Kyrgyzstan, it can now face punishment up to imprisonment for up to 15 years. For "organizing and facilitating prostitution and debauchery via the Internet live using a special platform (webcam studio)," a fine is imposed in the amount of ⃀100 to ⃀200 thousand or imprisonment for up to three years. The country's authorities believe that the law seriously tightens responsibility in this area.

Kyrgyzstan signed a law prohibiting undressing on a webcam to earn money

The same actions committed by a group of persons or a group of persons by prior conspiracy will be punished with a fine of ⃀200-300 thousand or imprisonment for up to five years. For activities in the webcam industry as part of an organized criminal group, it faces up to seven years in prison with confiscation of property, and if children are involved, up to 15 years in prison.

Models of webcam studios will be fined ⃀10 thousand. The law was adopted by the Kyrgyz parliament on June 26, 2024. Its initiator, deputy Nurlanbek Azygaliev, noted that some people can be forced to work in the webcam industry through human trafficking. In his opinion, the law will help combat exploitation and protect vulnerable segments of the population.

Russia has established criminal liability for the production and distribution of pornography, including using the Internet, however, according to the head of the State Duma Committee on the Protection of the Family Nina Ostanina, there is no need to introduce additional measures to regulate the webcam industry by July 2024. She believes that the existing legislation as a whole adequately regulates this area.^[9]

Blocking TikTok

In Kyrgyzstan, TikTok was blocked. This was announced by the Ministry of Digital Development of the country on April 19, 2024. Read more here.

Advertising market

2024: Kyrgyzstan bans advertising of mystical services

In November 2024, the Cabinet of Ministers of Kyrgyzstan approved a list of occult-mystical services, advertising of which is prohibited in the republic. The list includes fortune telling, clairvoyance, magical influence, vorozhba, damage, conspiracies, spiritualism, shamanism, healing and medicine without accreditation, as well as other types of "magical" influence. The normative legal act, according to its authors, is designed to exclude manipulation of the consciousness of citizens through unreliable ways of influence in order to extract their own benefits.

Alcohol market

Minimum age to purchase alcoholic beverages

Transport

2024

There are 300 thousand taxi drivers in Kyrgyzstan, 70% of which are through Yandex Taxi

In Kyrgyzstan, there are about 300 thousand taxi drivers, 70% of whom work through the Yandex Taxi platform, which raises questions about the monopolization of the market and causes concern to the country's authorities. This is evidenced by the data provided in the draft resolution of the Cabinet of Ministers of Kyrgyzstan, published in August 2024. Read more here

Opening of the first automobile plant

On July 18, 2024, the official opening of the Tulpar Motors automobile plant took place in Kyrgyzstan. The plant, located on an area of ​ ​ 4.7 hectares, will produce cars, trucks and buses. The project was implemented by the Kyrgyz OsOO "DT-Technik" together with the Uzbek JSC UzAuto. Read more here

R&D

2020: R&D costs - $25m

Unemployment

2020: Unemployment rate - 6.6%

Consumption

2023: Beef is the most consumed type of meat

2019: Beef is the most consumed type of meat

Notes