Kyrgyzstan’s economy is showing steady growth amid strong domestic demand. According to a macroeconomic review prepared by Eurasian Development Bank analysts, GDP increased by 11.5 percent year-on-year in January-July 2025.
Investments were the main driver. Their volume increased by 33.4 percent, leading to growth in construction by 37.8 percent, industry by 11.3 percent, and transport by 8.9 percent.
Analysts note that the expansion of consumer activity is supported by an increase in real wages (+11.5 percent in the first half of the year) and growth in consumer lending (+61.7 percent). Domestic trade increased by 13.2 percent, while the hotel and restaurant sector grew by 27.8 percent.
In industry, the main contributors are food processing enterprises, non-metallic product manufacturing, and metal ore mining, accounting for 45 percent of the sector’s overall growth.
Investment activity is contributing to the diversification of the economy: investment in the manufacturing industry has increased significantly (1.8 times) and the hotel industry (3 times). This summer alone, 67 industrial facilities were launched. The economy is also supported by funds from international development institutions.
The foreign trade deficit has narrowed. The trade deficit amounted to $4.9 billion in the first half of the year, $243 million less than a year ago.
Inflation in July was 8.8 percent and accelerated to 9.4 percent by mid-August. Price growth was driven by a low 2024 base, higher utility tariffs, and increased external demand for agricultural products.
The state budget was executed with a surplus of 8.5 percent of GDP in the first half of the year.
