Kyrgyzstan GDP Growth Slows to 4-Month Low

Kyrgyzstan’s GDP expanded by 11.1% year-on-year in January–July 2026, easing from 11.9% growth recorded in January–June. This marked the weakest growth since March, driven largely by the services sector, whose growth fell by 3.7 percentage points to 6.1% and accounted for 49.8% of total GDP. The slowdown was weighed down by weaker increases in wholesale and retail trade; car and motorcycle repair (8.4% vs 8.5%), transport and storage (4.2% vs 4.4%), and hotel and restaurant activities (9.6% vs 10.5%). Meanwhile, other sectors contributed positively to overall growth. Goods-producing industries grew by 3.3% and accounted for 34.2% of GDP, lifted by increases in agriculture, forestry, and fishing (6.0% vs 4.3%), mining (16.9% vs 12.8%), and water supply, waste treatment, and recycling of raw materials (17.3% vs 16.2%).

Kyrgyzstan’s GDP expanded by 10.1% year-on-year in January–March 2026, accelerating from 8.8% growth recorded in January–February. The stronger performance was largely driven by the services sector, which grew 7.7% and accounted for 53.5% of total GDP, mainly due to wholesale and retail trade and vehicle repair (14.8%) and transport activities (5.5%). Other sectors also contributed positively to overall growth, industrial output rose by 13.4%, manufacturing increased 15.2%, mining activity increased sharply (30.4%) and construction (29.6%). Meanwhile, agriculture, forestry, and fisheries posted more modest growth of 2.8%. Net taxes on products increased by 9.2%, representing 16.3% of GDP.

Kyrgyzstan’s GDP grew 8.8% year-on-year in January–February 2026, marking the slowest pace of expansion since mid-2024 and slowing from a 10.9% gain during the same period last year. Despite the slowdown, the economy has continued to expand since late 2021, primarily driven by industrial production, which surged 14.7%, supported by the production of base metals and metal ore. Other key sectors also recorded growth, including construction (23.2%) and agriculture, forestry, and fisheries (2.6%). Moreover, domestic demand remained a key driver of economic momentum, with wholesale and retail trade and vehicle repair services up 11.4%, and hotels and restaurants rising 13.2%. Investment activity also showed solid momentum, expanding 8.4%. The Eurasian Development Bank projects that Kyrgyzstan’s GDP could expand by as much as 9.3% by the end of 2026, provided industrial production and investment continue at their current pace.