Kyrgyzstan's economy grows by 10.8%: Construction output rises to more than 1.6 times its previous level

Kyrgyzstan's economy grew by 10.8% from January through September, according to a report released by the National Statistics Committee on October 15. During the same period last year, growth stood at 10.0%. Nominal gross domestic product reached 1,640.9 billion som, or about 18.8 billion U.S. dollars.

Construction and Industry Drive Growth

Services account for the largest share of economic output at 48.7%. Goods production accounts for 35.9%, and net taxes on goods for 15.4%. Construction output rose to more than 1.6 times the previous year’s level.

Industry grew by 7.0%. The chemical industry, petroleum processing, wood and paper, vehicle manufacturing, and building materials led the growth. Metal production declined. Agriculture grew by 6.5%, the hospitality sector by 8.6%, and retail trade by 4.2%. Foreign trade in goods reached $12 billion from January through August, an increase of 13.3%.

The pace was already high in the spring. In the first quarter, the economy grew by 10.1%, as reported by the Statistics Committee in April. Annual inflation stood at 11% at that time. Services accounted for more than 50% of output in that quarter; today, they account for 48.7%. Goods production is thus gaining ground.

Prices are rising, while the outlook is cooling

Consumer prices and tariffs in September were 8.1% higher than in December 2025. In its October Macro Poverty Outlook, the World Bank forecasts 9.6% growth for 2026. For 2027, it predicts only 7.3%. Inflation, on the other hand, is rising: “Average annual inflation in Kyrgyzstan could rise to 13.5% in 2027, following an expected 12% in 2026,” the report states, translated here from the Russian text.

In May, the National Bank of Kyrgyzstan had forecast growth of about 10% for 2026. At the time, it wrote: “The economy will continue to grow thanks to several factors.” The September data confirm this forecast. The bank cited higher utility rates, more expensive imported fuels, and rising wages in the public sector as factors driving up prices.

What This Means for German Companies

The construction boom is creating demand for building materials, machinery, and equipment. German exporters should focus on sectors where industry is growing: chemicals, wood processing, and automotive parts. Inflation of about 12% makes contracts denominated in som more expensive. Suppliers are better off securing themselves with euro or dollar prices and advance payment. Foreign trade is growing faster than industry, at 13.3%, which supports import demand for capital goods.

Sources: National Statistics Committee of Kyrgyzstan via Caspian Post/Xinhua (EN), Trading Economics (EN), World Bank via economist.kg (RU), National Bank of Kyrgyzstan via Akchabar (EN)

SK, Frankfurt