flag Kirguizistan Kirguizistan: Panorama econòmic

Economic Indicators

Landlocked Kyrgyzstan is a low-middle-income country and one of the poorest in Central Asia. Its economy is heavily dependent on gold exports (which generally account for one-tenth of the country's GDP and almost half of the exports), as well as remittances from citizens working abroad, primarily in Russia (equating to more than one-fourth of GDP), which decreased in recent years due to the deterioration of the Russian economy. Following a 9% expansion in 2022, the real GDP is projected to have grown by 6.2% in 2023 (World Bank). The services sector, especially those related to transit trade post-Russia's invasion of Ukraine, has been the primary driver of this growth. On the demand side, increased consumption and exports have contributed to the expansion. The GDP growth is anticipated to decrease to 4.5% in 2024 due to a deceleration in the services sector's growth. In general, the World Bank foresees an annual GDP growth slowdown to 4% in the medium term unless structural reforms are implemented to enhance potential growth.

In 2023, the government maintained a robust fiscal stance. It is estimated that the budget achieved a surplus of 1.2% of GDP, buoyed by rises in both tax and non-tax revenues. Despite this surplus, expenditures saw an increase, particularly in wages, salaries, social benefits, and pensions. The combination of fiscal surplus and economic growth has resulted in a reduced public debt level, standing at 45.5% of GDP by the end of December 2023, down from 46.9% the previous year. The fiscal surplus is projected to shift to a deficit of 1.6% of GDP in 2024 due to reduced tax revenues. This deficit is expected to widen further to 2.4% of GDP by 2026, primarily due to increased capital spending. Consumer price inflation dropped from 13.8% in 2022 to 10.8% in 2023, as global pressures on food and fuel prices eased, and domestic monetary policy stayed restrictive. If the central bank continues to uphold a cautious monetary approach and global food and fuel prices remain steady, inflation is forecasted to decrease to within the target range of 5 to 7% by the conclusion of 2024 and persist at a stable level in the medium term (data World Bank). The country has been trying to attract foreign investment to expand its export base, including the construction of hydroelectric dams, but a difficult business climate and disputes with foreign investors hindered the country’s attractiveness. Kyrgyzstan maintains close relations with China, which has helped the country finance infrastructure projects. The main challenge for policymakers is to strengthen macroeconomic stability, rebuild policy space for future shocks, mobilize financing for development needs, and raise growth potential by advancing reforms (IMF).

Following a notable decrease of 6.2 percentage points to 12.5% in 2021, the poverty rate (measured at USD 3.65/day) experienced a slight increase to 13% in 2022 due to elevated consumer price inflation. However, it is estimated to have declined to 11.2% in 2023 as inflation eased amidst economic growth. Progress in poverty alleviation is further reinforced by enhancements in social assistance, including pension increments, the expansion of cash grants through the "Social Contract" program, and the augmentation of transfers under the "Ui-Bulogo Komok" initiative.  Unemployment was estimated at 4.8% in 2023 by the World Bank, with a GDP per capita of USD 5,988 (PPP).

 
Main Indicators 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 11.6712.6813.6614.6915.65
GDP (Constant Prices, Annual % Change) 6.33.44.33.94.0
GDP per Capita (USD) 1,7181,8301,9302,0332,123
General Government Gross Debt (in % of GDP) 49.247.046.146.046.1
Inflation Rate (%) n/a11.78.66.65.5
Current Account (billions USD) -5.43-2.53-0.84-0.87-0.76
Current Account (in % of GDP) -46.5-20.0-6.1-5.9-4.8

Source: IMF – World Economic Outlook Database - October 2021.

Note: (e) Estimated Data


 
Monetary Indicators 20162017201820192020
Kyrgyzstani Som (KGS) - Average Annual Exchange Rate For 1 EUR 74.3877.7981.2278.4388.34

Source: World Bank - Latest available data.

 

Main Sectors of Industry

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 16.6 26.9 56.6
Value Added (in % of GDP) 12.1 24.0 52.1
Value Added (Annual % Change) 7.3 10.9 4.6

Source: World Bank - Latest available data.

 
Socio-Demographic Indicators 2024 (e)2025 (e)2026 (e)
Unemployment Rate (%) 9.09.09.0

Source: IMF – World Economic Outlook Database - Latest available data

 

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The Active Population in Figures

201820192020
Labour Force 2,526,2022,565,0162,440,848

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 63.64%62.45%62.35%
Men activity rate 78.35%77.74%77.70%
Women activity rate 49.27%47.51%47.34%

Source: International Labour Organization, ILOSTAT database

 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
63,7/100
World Rank:
78
Regional Rank:
13

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 
 

Country Risk

See the country risk analysis provided by Coface.

 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Partly Free
Political Freedom:
5/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
79/180

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Sources of General Economic Information

Main Online Newspapers and Portals
24 KG
Kabar Kyrgyz National News
AKIpress News Agency
Useful Resources
Ministry of Economy
Government of Kyrgyzstan
National Bank of the Kyrgyz Republic
 
 

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Latest Update: May 2024

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